Paytm lost more than Rs 52,000 crore of market cap over two days since listing on the back of valuation concerns
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Shares of One97 Communications, the parent company of Paytm, recovered sharply on November 23, by almost 6 percent to hit Rs 1,447 on the BSE.
The stock closed at Rs 1,360.30 on November 22, down more than 35 percent from its issue price of Rs 2,150.
The bounceback in the shares of the digital payments giant may have come amid the massive correction in the stock since its debut, which was triggered on the back of overblown valuations, and uncertainty over business model and path to profitability.
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Analysts continue to believe the stock is overvalued, with Macquarie maintaining a target of Rs 1,200, citing “lack of focus” in the business.
On November 21, the company reported a positive business update, saying that it recorded a 418 percent year-on-year growth in the value of loans disbursed in October.
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“October saw continued increase in adoption across our different financial services products. The lending business continued to show very strong growth as a result of rapid scale-up of all of our lending products, including Postpaid, consumer loans and merchant loans,” Paytm said.
The One 97 Communications Board of Directors will meet on November 27 to consider and approve the quarterly financial results. It is expected to subsequently release the July-September earnings numbers.
At 9:31 am, the stock was up 5.7 percent at Rs 1,437 on the BSE.
The benchmark indices meanwhile remained volatile, with the Nifty down 0.35 percent after recovering slightly at open.
