Paytm shares continue to fall, price plunges 17% on BSE on day 2 of opening

Paytm's parent company One97 Communications' shares continued its dip on Monday as the share prices fell to a new low. The Paytm stock fell over 17 per cent since opening for trade on Monday morning. The shares which debuted on a low from its premium on November 18 have been on a freefall since.

As of 12:30 pm, Paytm shares were being traded 17.55 per cent lower than their opening value. The stock which opened at Rs 1509 went into a dip before climbing back up to a high of Rs 1519 at around 9:30 am. However, the shares went onto a free dip and is currently being traded at Rs 1290 on the BSE. The shares had fallen at similar rates on the last trading day as well.

Paytm shares made a weak debut in the secondary market on Thursday and ended up 27 per cent lower for the day compared to the issue price. The Paytm IPO, though oversubscribed, fell in valuation and is currently being looked upon as one of the worst debuts in the history of the market. Since listing, Paytm Founder and CEO Vijay Shekhar Sharma made a statement that the listing day price was not a true reflection of the company's opportunity and scale, in an attempt to persuade investors away from selling the shares immediately.

Paytm share entered stock market with 20% slump over its opening price

One97 Communications, the parent company of the digital payments firm Paytm has entered the Indian stock market with a 20% slump over its opening price. The stock opened at Rs. 1,950 on the National Stock Exchange, which is a decline of 9.3% from the issue price of Rs. 2,150. In a rather unexpected fall, Paytm shares went into a major dip within hours after being available for public trading. During the initial public offering, Rs. 18,300 crore Paytm IPO (India's largest) was subscribed 1.89 times. The current Paytm share price is Rs. 1,654.75 (at 12:06 PM IST on November 18, 2021). According to a regulatory document, Paytm raised a lot of money from over 100 institutional investors, who purchased over three and a half crore shares for Rs. 2,150/share. 

Analysts and experts monitoring the company and its initial public offering suggested that the expensive valuations of the digital payments firm were the reason behind the huge fall in price in the opening trading session. Paytm was founded by Vijay Shekhar Sharma back in 2010. Initially, the platform offered the feature to recharge other mobile devices. Thereafter, the company got listed as a quick payment option by Uber, which boosted the growth of the company. Further, the high-value currency ban in India during 2016 was accompanied by the government's message to use digital forms of currency. The shift also benefited Paytm as a lot of people download the app and started using the platform. 

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