Paytm shares shed 13% as Lock-In Period For Anchor Investors Expires
Published On: Wednesday, December 15, 2021 | By: Team KnowMyStock
Shares of One97 Communications, the parent company of digital payments major Paytm, slipped 13 percent to Rs 1,297.70 on the BSE in Wednesday’s intra-day trade as the company's institutional investors' one-month lock-in period expired today, December 15, 2021, adding to the pressure following a dismal debut last month. Paytm shares crashed more than 27 percent in India's largest public offering last month. Since the listing on November 22, the stock has logged losses for 13 of the 18 sessions and has never touched its IPO price band of Rs 2,080-2,150. Paytm, which counts SoftBank and Ant Group among its backers, raised $2.5 billion in its IPO, of which $1.1 billion was from institutional investors. Parth Nyati, Founder, Tradingo said Paytm may find buying interest at lower levels but it may remain in the Rs 1,300-1,700 range until the market determines its right value.
"Paytm's greatest strength is its huge customer base and strong brand positioning, however, being a low entry barrier business, it lacks a clear moat. Paytm will use its strengths to either enter new businesses or to create moats," he added.
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