Mumbai: Paytm promoter One 97 Communications’ stock price hit a new low on Tuesday as a leading foreign brokerage house cut down its target price further to Rs 900 per share on a few negative developments.
After a 6 per cent fall on Monday, One 97 Communication fell another 3.32 per cent on Tuesday to close at Rs 1,119.50 per share on the BSE. The stock is down 16.67 per cent in January and 42.91 per cent from its all-time high of Rs 1,961.05 on ther BSE.
Paytm had listed at Rs 1,950 at a discount to its public issue price of Rs 2,150 and fell 27 per cent on debut day itself. Later the share price recovered but fell again as anchor investors' one-month lock-in period expired in mid-December.
Brokerage Macquarie at the time of listing warned investors of 40 per cent downside in Paytm's share price from fixed public issue price and set target price of Rs 1,200 with an ‘underperform’ rating.
In an update Macquarie has again downgraded the stock and revised its target price to Rs 900 per share, prompting investors to dump their holdings.
In the morning trade shares gained to Rs 1,215 after Paytm in a stock exchange filing provided an update on the operating performance of the company the for third quarter of FY22 citing growth in lending business and devices.
However, the selling pressure resumed as brokerages see stock's underperformance as Paytm's proposed entry into insurance business was recently rejected by Irdai, this could also impact its prospects of getting a banking licence....