Paytm shares slide for 2nd day; tumble nearly 14%

Shares of newly-listed One97 Communications, Paytm’s parent company, continued to decline for the second day in a row on Monday, November 22, 2021, tumbling nearly 14 per cent.

The counter continued to bear a deserted look as the stock declined 13.66 per cent to Rs 1,350.35 on BSE. On NSE, it tumbled 13.39 per cent to Rs 1,351.75.

Shares of One97 Communications Ltd on Thursday made a weak market debut and tumbled over 27 per cent from the issue price of Rs 2,150.

According to market analysts, concerns over valuation weighed on the stock. Ant Group-backed Paytm’s Rs 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 Rs 15,000 crore offer a decade back. Incorporated in 2000, One97 Communications is India’s leading digital ecosystem for consumers and merchants. Paytm on Sunday reported a more than two-fold rise in gross merchandise value at Rs 1,95,600 crore in the Q2 that ended on September 30, as pre the company’s first operating performance report for October filed at the Bombay Stock Exchange (BSE).

The company had recorded a GMV of Rs 94,700 crore in the same period a year ago. Paytm refers to GMV as the value of total payments made to merchants through transactions on its app, through Paytm payment instruments or the company’s payment solutions over a period. It excludes any consumer-to-consumer payment services such as money transfers.

The company reported a 131per cent growth in GMV to Rs 83,200 crore in October, compared to the Rs 36,000 crore it recorded for the corresponding period last year. According to the financial metrics filed by the company, monthly transacting users or unique users on the Paytm platform surged by 33 per cent to 5.7 crore in the July-September 2021 quarter from 4.3 crore in the corresponding quarter of 2020-21.

The value of loans disbursed through Paytm increased by close to 500 per cent to Rs 1,260 crore during the second quarter of the current fiscal, compared to the Rs 210 crore it recorded in the corresponding quarter of 2020-21. Paytm reported a 418per cent growth in loan value to Rs 630 cr in October 2021, compared to the Rs 120 crore worth of loan disbursed during the same period in the last fiscal.

Paytm will hold its first board meeting after going public on November 27 to consider and approve the financial results for the quarter and half year ended on September 30, 2021.