Paytm shares drop to new low, issue price discount reaches 41%
Shares of Paytm’s parent company, One97 Communications, continued to decline for the third day in a row to an all-time low. The stock fell more than 2% to Rs 1,262.1 on BSE, a discount of 41.3% from the issue price of Rs 2,150. Paytm is one of Dalal’s worst newbies Street in 2021.
One97 shares ended seven weeks of trading on the BSE and NSE exchanges after a weak listing on November 18. During this period, the Paytm share did not cross the issue price.
Here’s how Paytm stocks have performed since their inception in the secondary market:
A number of brokerage firms have launched coverage on Paytm.
JPMorgan has an “overweight” rating on Paytm with a target price of Rs Rs 1,850 each for March 2023.
Morgan Stanley also has an âoverweightâ rating on One97, with a target price of Rs 1,875 each.
Goldman Sachs has a âneutralâ rating on Paytm stock with a target price of Rs 1,630 a piece.
JM Financial has a âsellâ rating on the stock.
One97 Communications shares are listed on the stock exchange at a discount of approximately nine percent from the issue price. Paytm is among the worst newbies of 2021, a year that has seen most IPOs receive a solid response from investors.
One97 Communications reported a net loss of Rs 473 crore for the second quarter of the current fiscal year. The net loss, due to higher expenses, increased 24% quarter-on-quarter and 8.5% year-on-year. Operating income, however, was Rs 1,086.4 crore, up 63.6% annually and 22% sequentially.
(Edited by : Akanksha Upadhyay)
First publication: STI