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Paytm shares extend losses after weak debut, tumble 27%

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Paytm shares extended losses after its shares made a weak debut in the secondary market, listing at a discount of around nine percent to the issue price of its IPO.

Paytm shares extend losses after weak debut, tumble 27%
Paytm shares continued to decline after a weak debut in the secondary market on Thursday. Shares in Paytm parent One97 Communications listed on stock exchanges at a discount of nine percent.
The stock hit the lower circuit at 20 percent each on BSE and NSE, to close at Rs 1,564.2 and Rs 1,560 apiece respectively. At the current level, the Paytm stock quotes at a discount of more than 27 percent compared with its issue price.
Macquarie initiated coverage on Paytm with an 'underperform' rating and a target price of Rs 1,200.
Dabbling in multiple business lines restricts Paytm from being a category leader in any business except wallets, and unless the company lends, it can’t make significant money, the brokerage said.
Most analysts recommend only aggressive investors to hold Paytm shares now, and some even expect a correction in the short term.

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Paytm's IPO, which hit Dalal Street this month and attracted an overall subscription of 1.9 times, was the biggest IPO of all time in India.
One97's listing however was among the weakest so far in 2021, only days after Sigach Industries became the best debutant of the year with shares listing at a premium of 253 percent.
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