Paytm snaps two-day losing streak, shares rise 6%
The shares of digital payments company rose by nearly six per cent on Tuesday to ₹1,435 on the Bombay Stock Exchange (BSE). It had closed at ₹1,360.30 in the previous session on Monday - down 35 per cent from its valuation of ₹2,150.
The fall in the value of Paytm shares happened on the same day when the stock market posted its biggest fall since the second wave of the coronavirus disease (Covid-19) pandemic. The benchmark indices were down nearly two per cent.
The correct on Tuesday is a welcome news for Paytm, who is blamed by analysts of overblown valuation.
The financial experts also accuse Paytm of lacking focus in the business, but founder and CEO Vijay Shekhar Sharma's hopes have not diminished.
Paytm, meanwhile, reported more than two-fold rise in gross merchandise value at ₹1,95,600 crore in the second quarter that ended on September 30, according to the company's first operating performance report for the month of October filed at BSE.
The company had recorded a gross merchandise value of ₹94,700 crore in the same period a year ago.
On November 27, the company will hold its first board meeting after going public to consider and approve the financial results.
Ant Group-backed Paytm's ₹18,300 crore IPO, India's biggest share sale, was oversubscribed 1.89 times earlier this month.
This was greater than miner Coal India's ₹15,000 crore offer a decade ago.
Incorporated in 2000, One97 Communications - Paytm's parent company - is India's leading digital ecosystem for consumers and merchants.