Paytm shares tumble as lock-in period ends
New Delhi: Shares of recently-listed One 97 Communications Ltd, Paytm's parent company, continued to face selling pressure for the fourth session on the trot and further tanked nearly eight per cent on Wednesday.
The stock tumbled 7.72 per cent to close at Rs 1,380.05 on the BSE. During the day, it plunged 13.22 per cent to Rs 1,297.70. On the NSE, it declined 7.63 per cent to close at Rs 1,381.90. "Paytm's shares tumbled over 13 per cent as a lock-in period for the company's institutional investors ended on Wednesday.
Following a sharp decline after the lock-in period ended for anchor investors, Paytm is finding buying interest at lower levels however 1,700 may act as a supply point and it may remain in the 1,300-1,700 range until the market determines its right value," said Parth Nyati, Founder, Tradingo. In traded volume terms, 5.40 lakh shares were traded at the BSE and over 1.31 crore units at the NSE during the day. "The 8 per cent correction in Paytm stock amidst huge trading volume as the lock-in for anchor investors ended today may be partly due to anchor institutional exits from the stock damaged by negative sentiments. Since the stock is down 35 per cent from the issue price the stock may find buying support at the current level," VK Vijayakumar, Cheif investment Strategist at Geojit Financial Services said. The stock has been falling for the fourth session in a row, tumbling 13.45 per cent.