Paytm's parent company One97 Communications' shares continued to tumble on Monday following a weak listing last week. The Paytm stock fell as much as 10 percent before paring those losses in early deals.
At 10:15 am, Paytm shares traded 9.68 percent lower at Rs 1,409.65 on the BSE, having fallen as much as 10.4 percent earlier in the day.
On Thursday, Paytm shares made a weak debut in the secondary market, with One97 stock ending 27 percent lower for the day compared to the issue price. The Paytm IPO, though oversubscribed, was booked 1.9 times. Paytm became one of the worst Dalal Street debutants of recent times.
After the listing on Thursday, Paytm Founder and CEO Vijay Shekhar Sharma said that the listing day price is not a true reflection of the company's opportunity and scale.
"People will take time to understand the business model. The fact that a payment company can do financial services like private insurance and wealth is something new to the Indian stock market. Over the period it will show up what this business model and scale is," said Sharma.
Macquarie Capital Securities initiated coverage on Paytm with an 'underperform' rating and a target price of Rs 1,200.
Paytm is the latest among new-age companies to tap Dalal Street for capital. This month, shares in PB Fintech - the operator of insurance platform Policybazaar and financial services portal Paisabazaar - began their journey in the secondary market at a premium of 17.4 percent over the issue price, after the company's IPO saw a subscription of 16.6 times.
Earlier this year, Zomato shares listed on stock exchanges at a premium of 51.3 percent over the issue price, after its IPO was subscribed more than 38 times the shares on offer.
(Edited by : Sandeep Singh)
First Published: IST