Shares of One97 Communications recovered sharply for the second session
Paytm shares were trading nearly 16 per cent higher on the Bombay Stock Exchange (BSE)
Shares of Paytm’s parent company One97 Communications recovered for the second straight session after falling sharply for the first two days.
Paytm shares were trading nearly 16 per cent higher on the Bombay Stock Exchange (BSE) at above Rs 1,700 apiece at 12:50 pm. The shares of the biggest digital payments provider gained about 16% on the NSE as well. Paytm’s market value has surpassed Rs 1 lakh crore as a result of the sharp increase. The rise in Paytm’s share price has also reduced losses incurred by investors after the stock dropped for the first two days.
While the quick rise would bring some relief to shareholders, Paytm shares are still much less than their IPO offer price of Rs 2,080-2,150. Analysts think that the rebound in Paytm’s stock is owing to decreased levels of investor buying after the stock fell sharply on Monday. Paytm’s stock may rise as well, since the business will conduct its first board meeting following its stock market listing on November 27. Analysts are unsure if the stock would be able to maintain its momentum.
Analysts who had expressed concern about Paytm’s expensive valuation and profitability were not surprised by the company’s poor stock market debut. The stock’s future performance will be determined by what the company announces at its forthcoming board meeting, as well as its ability to carry out plans to increase sales and profitability.
