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New Delhi: Paytm shares continued their quick downslide on Monday, the second trading day after the digital payments firm listed on India’s stock exchanges.
The company’s share price was down over 13% at Rs 1,330.05 as of 1 pm.
The fall came amidst a larger downward trend in the stock markets on Monday, with the flagship Sensex down over 900 points at 58,734.44 as of 1:11 pm.
At Rs 2,150 per share, Paytm managed to raise over Rs 18,000 crore from new investors last week, but on listing day the stock price crashed over 27% on debut, becoming the biggest-ever first-day loss among initial public offerings (IPOs) that went to the market in the last decade.
On Monday, brokerage firm Macquarie put out a second report on the company, advising a target price of Rs 1,200 and an ‘underperform’ rating after its first one on listing day ruffled investors.
“Paytm’s valuation – is expensive, especially as profitability should remain elusive for a long time. We recommend UP with TP of Rs 1,200 valuing company at 0.5x PSg on Dec-23 annualised sales,” the report said.
On Sunday, a day before the second round of trading started, One97 Communications, Paytm’s parent firm, reported that its gross merchandise value (GMV) for the month of October touched Rs 832 billion (around $11.2 billion), a growth of 131% on a year-on-year basis.
In a disclosure to the stock exchanges, the company said that the growth was driven by the festive season and an increase in number of merchants and consumers, adoption of new products, transactions for both online and in-store merchants, and in deployed devices.