Founder Vijay Shekhar Sharma blames bad times for Paytm’s flop listing

Paytm Share Update: The decline in the stock of Paytm is not taking its name to stop. Since the listing on the stock exchange, investors investing in Paytm shares and its IPO are going through a bad phase. The company’s founder Vijay Shekhar Sharma has broken the silence on the continuing fall in the stock of Paytm. He attributed this condition of Paytm’s stock to IPO at the wrong time.

In IAMAI’s India Digital Summit 2022, Vijay Shekhar Sharma said that at the time when the company came out with the IPO, the market was witnessing a decline due to different reasons, which is affecting the stock of Paytm. He said that people are making the mistake of underestimating the payment revenue potential of Paytm. Our business has never looked better than it is today. According to Vijay Shekhar Sharma, Bajaj Finance is in the business of giving loans for 30 to 32 years but today Paytm is processing more loans than Bajaj Finance in just three years.

Paytm’s stock continues to decline
Since the listing on the stock exchange, Paytm, which has brought the country’s largest IPO, has been facing several setbacks one after the other and these shocks do not seem to stop. Used to be. There was a tremendous beating of Paytm’s stock in Wednesday’s trading session. Paytm Shares fell by 3.30 per cent (Rs 36.95) to Rs 1082.70, nearly Rs 1,070 below its issue price. The reason for the fall in the share of Paytm is the new target of the brokerage house Macquarie Capital regarding the share of Paytm.

Macquarie slashes Paytm’s target
Foreign brokerage house Macquarie Capital has expressed the possibility of further fall in Paytm’s stock. Macquarie Capital has reduced the target of Paytm to Rs 900 per share. Which is 26 percent below the current level. Earlier, Macquarie had reduced Paytm’s target to Rs 1200. Now the share of Paytm is trading below Rs 1100.

The question arises that where will the trend of decline in Paytm’s stock stop. Because market experts are advising to stay away from this stock, as well as some are expressing the possibility of further decline. The new target of Paytm that Macquarie has given is about 58 percent below its issue price of Rs 2150. According to Macquarie, Paytm’s business model lacks direction. According to him, making profit is a big challenge for Paytm.

Paytm has lost Rs 69000 crore to investors since the listing. Before listing in the stock market, Paytm had a market value of Rs 1.39 lakh crore according to the IPO price and today its market cap has come down to Rs 70,188 crore.

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