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Paytm shares a three-day winning streak;  Storage tanks over 7%


Shares of One97 Communications, parent company of Paytm, fell more than 7% after rising for three consecutive trading sessions. Overall weakness in the broader market also weighed on Paytm shares. Nifty50 and Sensex both fell almost 2% today.

At 9:36 am, the stock was down more than 3% to Rs 1,740.5 on BSE, a far cry from the issue price of Rs 2,150. During this week, the stock rose by more than 11%.

Paytm’s IPO suffered from exorbitant valuations, several analysts said.

One97 Communications is a big cash consumer and achieving scale with profitability is a big challenge, the foreign brokerage warned.

Some market participants believe new age tech companies are the future and their stocks are worth buying, but not at foamy valuations.

Earlier this week, leading investor Shankar Sharma said small loss-making companies with excessively high valuations will eventually have to prove their mettle, and added that companies in the new era will need to put in “a lot of hard work and a lot of cash burn “to be able to grow in size and scale.

Meanwhile, a news report reported that several large investors added Paytm shares to their holdings after the shares plunged 41%.

BlackRock Inc. and the Canada Pension Plan Investment Board were among the so-called IPO flagship investors who bought more Paytm shares on Tuesday and Wednesday, the report added.


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