New Low: Paytm Slides Under Rs 600/Share Mark, M-Cap Erodes Over Rs 1 Lakh Crore

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New Low: Paytm Slides Under Rs 600/Share Mark, M-Cap Erodes Over Rs 1 Lakh Crore

By Malvika Gurung

Investing.com -- Shares of the digital fintech company Paytm (NS: PAYT ) continued its free-fall, tanking 12.2% to end at Rs 592.45 apiece on Tuesday, sliding under the Rs 600/share mark and plunging 72.45% compared to its issue price of Rs 2,150.

The company’s market capitalization has slid to Rs 38,421 crore, eroding its valuation by over Rs 1 lakh crore, as it commanded an m-cap of about Rs 1.39 lakh crore at the time of listing.

In an interview with CNBC TV-18 in January, market veteran Shankar Sharma stated that it would not be surprising if shares of new-age digital stocks like Paytm, Nykaa (NS: FSNE ), Zomato (NS: ZOMT ), Cartrade (NS: CART ) and PB Fintech (NS: PBFI ), among others, tank 80-90% by the end of 2022.

The new-age digital stock dived 13% on Monday after the RBI banned Paytm Payments Bank from onboarding new customers to its platform on an immediate basis, and despite posting the highest ever monthly loan disbursals in February on Tuesday, the stock’s performance showed no signs of improvement.

On Friday, the market regulator RBI banned Paytm Payments Bank from onboarding new customers to its platform on an immediate basis, and a Bloomberg report on Monday posted that the ban was put in place as the company violated rules by sharing local data with Chinese servers and failing to verify its customers properly. 

Paytm CEO Vijay Shekhar Sharma clarified in an interview with Moneycontrol that the Bloomberg report did not corroborate the facts and was malicious.

However, investors seem to pay no heed to either Sharma’s claim on the Bloomberg report or the positive figures reported by the company.

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100
  • jay patel @jay patel
    197
    Like 0
  • Shailesh Raut @Shailesh Raut
    Rs 300 /share very soon 😍
    Like 0
  • Harshraj Ashar @Harshraj Ashar
    Never catch a falling knife
    Like 0
  • GABA JI @GABA JI
    now time get to recover 40% share soon
    Like 0
  • Devender Raju @Devender Raju
    how much will it go down side, what if stock is held for 4 to 5 years time
    Like 0
    • Siddharth Ahuja @Siddharth Ahuja
      It may go below 100, and then stays in that range for many years to come. The company wont shut down though. Its got too many customers. Could be sold to Reliance though.
      Like 1
    • Siddharth Ahuja @Siddharth Ahuja
      Like 0
    • Diljeet Narang @Diljeet Narang
      will become penny stock and will remain sub 20 levels
      Like 0
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      100
  • Devender Raju @Devender Raju
    how much will it go down side, what if stock is held for 4 to 5 years time
    Like 0

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