Paytm shares in focus! Here's what investors should know 

Shares of Paytm (listed as One97 Communications) are in focus again as Paytm Mall, which is the e-commerce business of One97 Communications has seen a nearly 99.5 per cent valuation decline with its lead investors Chinese internet giant, Alibaba and investment firm, Ant Financial taking an exit from the firm. 

On Monday, Paytm founder Vijay Shekhar Sharma said that Paytm Mall’s business will now be built on Open Network for Digital Commerce (ONDC), bringing a larger impact to small businesses. 

“Keeping in mind our attention to building an open platform for e-commerce, our PaytmMall ‘s business now be built on ONDC. It will be cost effective, scalable and bring even larger impact to small businesses,” he said. 

The stock touched an intraday high of Rs 603.35 on Tuesday. However, it also tanked 2 per cent to hit an intraday low of Rs 577.3 on BSE. At 14:35 hours, the shares were trading 0.23 per cent higher at Rs 592.80. Market cap of the firm rose to Rs 38,447.07. 

Currently, the stock is down over 70 per cent from its all-time high of Rs 1,961.05. It is trading higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages 

"Paytm’s foray into the general insurance industry seems obscure as its deal to acquire a 51 per cent stake of Prism Johnson Ltd’s in Raheja QBE General Insurance is void. However, the notion of Paytm directly getting requisite approvals for a new general insurance wherein it would hold a 74 per cent majority stake seems like a good idea," Sonam Srivastava, Founder at Wright Research told Business Today. 

She highlighted that there is still immense ambiguity about how it would execute the same and whether this would be a favorable decision. However, since the news broke out, its share price has been on the greener side. 

"There is a hint of upside momentum in Paytm’s share price, and at its current valuation, it is a good time for new investors to enter. Existing investors are advised to stay neutral with their current position and not indulge in any trade," she added. 

One97 Communications stated on Sunday in a BSE filing that its share purchase agreement to acquire 100 per cent of Raheja QBE General Insurance Company Limited has been terminated as its transaction could not be completed within the agreed time period.   

“Our associate company, Paytm lnsuretech Private Limited, had entered into a share purchase agreement to acquire 100 per cent of Raheja QBE General Insurance Company Limited. 

As the share sale and purchase transaction has not been consummated within the time period envisaged by the parties under the said agreement, the agreement has automatically terminated,” stated the company in a filing.

 Vijay Shekhar Sharma-led One 97 Communications made a tepid debut on November 18 last year. The scrip got listed at a discount of 9.30 per cent at Rs 1,950 on the NSE against the issue price of Rs 2,150 per share.