PayTm Stock Price: With such a huge drop on the day of listing, Paytm has become the worst performing stock. On the very first day, the share price reached Rs 1560 with a fall of 27 percent.
PayTm Stock Price: Shares of One97 Communication, the parent company of digital mobile payment platform PayTm, are getting beaten up fiercely. As soon as the listing bell rang on Thursday, November 18, the stock price started running down. It was heartbreaking for investors or for those who have invested. PayTm share price fell by 23% against the issue price of Rs 2150. By the end of the business, the lower circuit also took place in the stock of Paytm.
market cap collapsed
Today this share was listed on the Bombay Stock Exchange at Rs 1,955 while on the National Stock Exchange at Rs 1,950. Even after the listing, the shares continued to fall. The market cap of Paytm has come down to Rs 1.08 lakh crore. The market cap before listing was estimated at Rs 1.48 lakh crore.
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Will continue to decline further
Brokerage firm Macquarie has claimed in its report that there may be further decline in the stock of Paytm. The stock may break 40% more from the current price. Presently the share price is at Rs 1560. But, the share price can go up to Rs 1,200 in the coming days. Macquarie says that it is a big challenge for Paytm to make the company profitable. The regulation of the sector and increasing competition is also a matter of concern.
Valuation is expensive
PayTm’s IPO is the country’s largest IPO with Rs 18,300 crore. But, the brokerage firm believes that the valuation of PayTm is very expensive. Soon the Reserve Bank may bring regulation on Buy Now, Pay Later for Fintech companies. The brokerage firm says that the company has raised funds but is in loss. In such a situation, Outlook does not appear strong.