Paytm Shares Rebound After Two Sessions Of Selloff
The stock jumped more than 12% in intraday trade on Tuesday to Rs 1,525 apiece.
Shares of One 97 Communications Ltd., the parent of digital payments platform Paytm, gained after shedding nearly 40% in the first two sessions post listing on Thursday.
The stock jumped more than 12% in intraday trade on Tuesday to Rs 1,525 apiece and ended the session with nearly 10% gains at Rs 1,494.7 apiece
The scrip had slumped 27.40% on the first trading day, marking the worst trading debut in at least two decades as analysts raised concerns about its profitability and investors balked at high valuation. It further lost 12.89% on Monday.
The two-day plunge raised concerns over the impact on technology firms going public and could even force companies to rethink the pricing and timing of their offers, Edelweiss Financial Services Ltd. said in a note.
According to Macquarie Capital Securities, profitability remained elusive for Paytm for a long term. The research house has maintained its 'underperform' view on the stock with a target price of Rs 1,200, an implied downside of 11.74% from current levels.
The company is scheduled to report its quarterly earnings for quarter ended September on Nov. 27.