Paytm Continues to Decline, Stock Sheds 13% More

Shares of Paytm parent One97 Communication plunged as much as 19% on Monday, adding to its 27% decline on debut on Thursday as retail investors who bet on a listing gain continued to dump the stock while domestic institutional investors stayed away from the counter. The subdued listing and continuation of weak trading on Paytm has dented sentiment in the domestic market, which had been thriving on the strong primary market, said analysts.

The stock recouped some losses at the end, closing at Rs.1, 360.30 on Monday, 13% lower than Thursday’s closing price and 37% lower than the offer price of Rs 2,150.

The company’s valuation has declined from Rs. 1.4 lakh crores at the offer price to Rs 88,185 crores on Monday.

“No one knows when the correction will end in Paytm as there are no reliable valuation models to value the new-age digital companies,” said Geojit Financial Services chief investment strategist VK Vijayakumar. S-ET

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