Stocks

Paytm ends positive for first time after damp squib listing

Our Bureau Mumbai | Updated on November 23, 2021

Stock closes 10% higher at ₹1,494.95

The shares of One97 Communications, which operates Paytm, also recovered on Tuesday up nearly 10 per cent higher after suffering nearly 40 per cent loss post listing over the last two days. The stock of Paytm closed 9.90 per cent higher at ₹1,494.95 on the BSE. As against the IPO price of ₹2,150, the stock got listed at ₹1,950 and slid further to ₹1,271.25 on the BSE.

Subdued stock prices

However, experts expect Paytm stock prices to remain subdued for a while amid high valuations and profit-booking in the market.

Santosh Meena, Head of Research, Swastika Investmart Ltd, said, “If we talk about the future outlook, then it is still erratic because the market is not clear about its core business and timing of profitability.”

Meena added, “The market will watch how Paytm will use its strengths to enter into new businesses or create a moat. If it manages to emerge as a leader in a particular business, then we can expect buying interest from lower levels otherwise it may take many years to reach its peak valuations.”

On its part, Paytm tried to assuage investor concerns by releasing some positive numbers on Monday. It reported a 418 per cent year-on-year growth in the value of loans disbursed in October.

Meanwhile, the Board of Directors of the company is scheduled to meet on Saturday, November 27, 2021 to consider the financial results of the company for the quarter and half year ended on September 30, 2021..

Published on November 23, 2021

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