NEW DELHI: Paytm shares continue to hit new lows with each passing day. After collapsing over 11% on Tuesday, shares of One 97 Communications, Paytm’s parent firm, fell nearly 8% to hit a record low of Rs 440.35 intraday before calling the day off at Rs 450, down 6% from the previous session’s closing.
Its market capitalisation (m-cap) stood at Rs 29,361.31 crore on Wednesday, down nearly Rs 1.10 lakh crore from its IPO value of Rs 1.39 lakh crore. A fresh fall in the scrip comes after a report by global brokerage firm Macquarie said Paytm is likely to face headwinds from the entry of Mukesh Ambani's Jio Financial Services (JFS).
As per market experts, the stock may see further selling and may hit new lows as there are abundant shares to offload following the expiry of the one-year lock-in period for pre-IPO investors. Since November 14, Paytm shares have dipped about 29% during which one of its largest shareholders, SoftBank, reduced its stake by 4.5%, mopping up over 1,600 crores from the stake sale. Ravi Singal, CEO of GCL Securities, said, “Investors must wait.
The stock will take time to reach bottom. It can test Rs 350 levels after consolidation. It is possible to accumulate near these levels in the long term.” Ravi Singh, vice-President and head of research at Share India, said Paytm share prices may continue its selling spree amid the continuous dumping of shareholdings by large funds.