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Paytm shares extend gains to third day in a row after weak listing

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Paytm parent One97 Communications' shares continued to rise for a third straight day on Thursday after a weak debut in the secondary market last week. 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.

Paytm shares extend gains to third day in a row after weak listing
Paytm parent One97 Communications' shares rose on Thursday, continuing to strengthen for the third back-to-back session following a weak debut. This helped Paytm shares inch towards their issue price of Rs 2,150.
On BSE, the Paytm stock was up 2.5 percent at Rs 1,796.6. The One97 scrip was up 2.6 percent at Rs 1,797.9 on NSE.
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 the current level, Paytm shares are available at a discount of around 16 percent to its issue price.
DateClose Price (in rupees)Change (in rupees)Change %
24-Nov-211,753.2258.217.3
23-Nov-211,495134.79.9
22-Nov-211,360.3-203.9-13.0
18-Nov-211,564.2-585.9-27.2
The Paytm public offer emerged as the biggest of all time in India, surpassing the likes of miner Coal India, power generator Reliance Power and insurer GIC. One97's mega IPO, though fully subscribed, failed to attract the kind of investor interest enjoyed by most newcomers this year.


Paytm's weak listing comes at a time when most analysts have raised concerns about hefty valuations of new-age companies. This month, chemical maker Sigachi Industries became the best market debutant of 2021, with shares listing at a premium of 252.8 percent over the issue price.
Ajay Srivastava, CEO of Dimensions Corp Financial Services, told CNBC-TV18 that 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.
Srivastava also said he would wait for the 30-day lock-in period for new listings like Paytm and Nykaa.
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