Paytm plunges as anchor lock in period ends
Shares of One97 Communications, the parent company of digital payments giant Paytm, tumbled 11 percent in trade on December 15 as the anchor lock-in period of 30 days ended.
The stock fell to an intraday low of Rs 1,297.70 on the BSE, which is very close to its all-time low of Rs 1,271.25.
Its volumes spiked in trade on December 15 with over 57 lakh shares changing hands on the NSE and BSE, about 4 times the one-week average of 14 lakh shares.
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As per a report by Edelweiss Alternative Research, the percentage of anchor shares outstanding is 5.9 percent in Paytm, or about 3.83 crore shares.
As many as 76 percent of stocks that went public in 2021 as of October saw selling pressure on the anchor lock-in opening dates with the average decline being 2.6 percent, the research firm said.
It added that in most cases, selling pressure persisted the next day of anchor lock-in opening as well, with some seeing losses over the next five days.
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Paytm had seen a disappointing debut to begin with, listing at a discount of 9 percent to its issue price of Rs 2,150 and losing about 40 percent of its market cap in the first two trading sessions.
It managed to recoup some losses and hit a high of Rs 1,961.05 in the last week of November, which was still below its issue price.
It has seen a volatile trading journey in the past month, and is down more than 13 percent since its listing.
Also read: Lock-in period for anchor investors of recent IPOs ends
Market experts have been worried about inflated valuations, an unclear business model and uncertain path to profitability.
At 09:57 hours, the stock was trading over 9 percent lower at Rs 1,358 on the BSE.
