Paytm shares surge, reclaim Rs 1,700-mark in rebound after weak debut

Paytm parent One97 Communications' shares continued to rise for a second straight day on Wednesday in a rebound after a series of losses. This helped Paytm's shares inch towards its issue price of Rs 2,150. In the first two days of its journey in the secondary market, the digital payment platform's stock had shed 36.7 percent of its value compared to the issue price, emerging as one of the weakest debutants of recent times.

At 2:40 pm, the Paytm stock traded 15.1 percent higher at Rs 1,721 on BSE. At this price, Paytm shares were available at a discount of 20 percent to its issue price.

On NSE, One97 Communications shares quoted at Rs 1,717.7, up

14.9 percent from their previous close.

Paytm's IPO emerged as the biggest of all time in the country, surpassing the likes of Coal India, Reliance Power and GIC. The mega share sale, though fully subscribed, failed to attract the kind of investor interest enjoyed by most newcomers this year.

ALSO READ: 10 high profile IPOs other than Paytm that debuted poorly on Dalal Street

Paytm's weak listing comes at a time when most analysts have raised concerns about hefty valuations of new-age companies.

Ajay Srivastava, CEO of Dimensions Corp Financial Services, told CNBC-TV18 Paytm does not have pent-up demand in the FII universe, where Nykaa will have a much stronger standing. Paytm will depend on mutual funds for its supply to be absorbed, he said.

The market expert also said he would wait for the 30-day lock-in period for new listings like Paytm and Nykaa.

Paytm's listing came days after chemical maker Sigachi Industries became the best market debutant of 2021, with shares listing at a premium of 252.8 percent over its issue price.