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    Paytm critic Ashneer Grover turns bullish on stock

    Paytm critic Ashneer Grover turns bullish on stock

    Paytm critic Ashneer Grover turns bullish on stock
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    By CNBCTV18.com  IST (Updated)

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    Shares of Paytm have fallen close to 70 percent from its initial public offering (IPO) price of Rs 2,150. The IPO was launched in November 2021.

    While investors debate whether to pick, offload, or hold on to shares of One 97 Communications, Paytm's parent company, one of the firm’s fiercest critic, Ashneer Grover, has given a thumbs up for a buy.
    In a Twitter post, Grover, who resigned as BharatPe MD and director a couple of weeks ago, said: “Paytm stock is a screaming BUY! It’s valued at $7B; Funds raised itself is $4.6B; Cash in Hand should be $1.5B. So at CMP (current market price) of ₹600, the market is saying value created is $5.5B after having spent $3.1B over last 10 years. That’s less than Bank FD rate. BUY!!”
    Shares of Paytm have fallen close to 70 percent from its initial public offering (IPO) price of Rs 2,150. The IPO was launched in November 2021. Shares of One 97 Communications fell as much as 3.05 percent again on Thursday after Macquarie Securities India’s Suresh Ganapathy, one of the most bearish analysts on Paytm, slashed its price target on the stock by a staggering 35 percent to Rs 450. Macquarie believes Paytm will face more headwinds on the regulatory side.
     
    But Grover turning bullish on Paytm stock comes as a surprise. In November 2021, Grover had said Paytm’s slide after the listing was not good news for the category as a whole.
    “I think the company simply seems to have not looked at where the market is, and just gone ahead and priced itself where it wanted to. So, it is a cumulative failure of the management, and the bankers. You know, 40 percent, down on a $20 billion stock, which is supposed to be the poster child of the Indian startup – it is category killing,” Grover had said.
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    Stocks of new-age businesses such as Paytm have seen a series of losses in the recent past, mirroring the trend on the Nasdaq, where investors have suddenly lost appetite for highly valued tech and platform companies.
    Grover had questioned Paytm’s $20 billion valuation when the “largest UPI player PhonePe is valued at $9 billion”. He had also expected IPO valuations to come down after Paytm listing.
    In exit talks, Grover reported asking for his stake in the company to be bought out at a valuation of $4 billion. BharatPe, started in 2018, has commanded—in successive rounds of funding, a valuation of $425 million in 2020, increasing to $900 million by February 2021, and further to “unicorn” (billion dollar valuation) status of $2.85 billion by August 2021.
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