Paytm shares fall by 24% after listing with discount, what is the expert’s advice

Shares of the country’s largest IPO One97 Communications Paytm were listed on the stock exchange today. The stock was listed at the expected discounted price. The shares of Paytm were listed at 9% discount against the issue price of Rs 1950 i.e. Rs 2150. Paytm IPO opened on 1st November and closed on 3rd November. The company had fixed a price band of Rs 2080-2150 for the IPO.

Paytm shares continued to fall even after listing at a discounted price. On Indra Day, the stock fell to Rs 1,586 on the BSE. Paytm shares were trading at Rs 1,655 at 11:45 am on BSE. The stock was trading at around Rs 1,626 on NSE. At 11:45 am, Paytm’s stock was trading down about 24%. The lower circuit for the company’s stock is 30% or Rs 1,564.

However, as the stock continues to decline, some market experts say this will make people realize that sometimes investing in the wrong stocks can lead to long-term losses. Anurag Singh, Managing Partner, Ancid Capital said, “I don’t think the stock can bounce back from here. This type of valuation is actually called financial immaturity. I am ready to invest in this stock only if it offers a discount of 50% on its current value. At present I do not see any one-way rule of Paytm in its market. Therefore, there will be no big jump in the share price.

What should investors do?

Market experts on Paytm shares say that those who have seen Paytm shares through IPO should exit after the bounceback. For this, keep a stop loss of Rs 1720 per share. Leading market expert Partha Nyati said, “Paytm is a loss making company. There is no profit margin in the near future. As soon as the stocks jump, they should exit. After the brand name, the valuation of the company went up. Therefore, improvement can be seen in the near future.

Another expert said, “I would say that investors who want to keep their investments for a long time should go for Paytm shares. In my opinion, Bajaj Fincern is a better option than Paytm. They should keep a stoploss of Rs 1,720. , which is 20% less than the issue price.

Country’s biggest IPO

The company had fixed a price band of Rs 2080-2150 for the Rs 18,300-crore IPO of payments company Paytm’s parent company One97 Communications. Paytm’s IPO is the biggest IPO in India. Earlier the biggest issue was of Coal India. The issue of Coal India came in the year 2010. Coal India raised Rs 15,200 crore through IPO. Paytm’s Rs 18,300 crore IPO was filled 1.89 times. Paytm’s IPO is the biggest sale of stock in the country’s history. This has made Paytm one of the most valuable companies in the country.

(Note: The investment advice given here represents the personal opinion of experts. It has nothing to do with or its management. Please consult your financial advisor before making any investment.)

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