New Delhi: Shares of One97 Communications — parent company of digital payments firm Paytm — plunged as much as 13.22 per cent as a lock-in period for its anchor investors ended on Wednesday. The stock touched an intraday low of Rs 1,297.70 in early trade.
As of 9:57 am, Paytm stock was down 9.25 per cent to trade at Rs 1,357.15.
Paytm shares crashed more than 27 per cent in India’s largest initial public offering (IPO) last month.
Since the listing on November 22, the scrip has logged losses for 13 of the 18 sessions.
Analysts have pointed at the firm’s expensive valuations as the reason behind the plunge in its stock price.
Several market participants saw the stock’s performance as a sign that investors had become disillusioned with a recent string of IPOs with inflated valuations.
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.
The digital payment giant’s backers include the likes of Warren Buffett’s Berkshire Hathaway Inc. and Masayoshi Son’s SoftBank Group Corp.
Paytm had reported a net loss of Rs 473 crore in the September quarter compared to a loss of Rs 437 crore in the corresponding period last year.
Revenue from operations in the second quarter (Q2) of the current fiscal stood at Rs 1,086 crore, compared to Rs 664 crore in the year-ago period, marking a growth of 64 per cent.
The company’s revenue from payment services to merchants rose 64 per cent to Rs 400 crore, driven by non-UPI payment volume in payment gateway and growth in devices.