Analysts, however, expect the stock to attract buying interest soon.(File)New Delhi:
Fintech major One97 Communications, which owns Paytm brand, tanked 10 per cent on Thursday after the news emerged that early investor Softbank has sold a 4.5 per cent stake in the company Fintech major One97 Communications, which owns Paytm brand, tanked 10 per cent on Thursday after the news emerged that early investor SoftBank has sold a 4.5 per cent stake in the company in a block deal.Analysts, however, expect the stock to attract buying interest soon.”Paytm has been disappointing investors since its IPO (initial public offer) last year. SoftBank sold 4.5 per cent stake at Rs 555 – Rs 601 range which at lower end was at discount to its yesterday’s closing price. SoftBank selling its stake has further weakened the sentiment on this counter, However, we do expect some buying in this counter tomorrow once the name of buying counterparts is known,” said Rahul Sharma, Research Head at Equity 99.Most new-age tech stocks have been battered in the stock market even since their listing. Analysts have attributed the opaque revenue model of these companies and their high valuations as the prime reasons for the investor fury.Paytm is among the worst hit in this lot.As per the listing norms of the Securities and Exchange Board of India (SEBI) pre-IPO investors need to compulsory hold the shares post listing for six months to one year from the listing date. As the restrictions on these scrips listed in November-December 2021 go, there is a huge supply from pre-IPO placements.”If we look at listed new-age companies not many have rewarded investors even though markets have rebounded …. Overall, we believe along with Paytm, other stocks such as Nykaa and Policybazaar will continue to remain under pressure for the next few weeks with a hangover of supply,” said Prashanth Tapse – Research Analyst and Senior VP- Research, Mehta Equities.When Paytm came up with Rs 18,300-crore initial public offer (IPO) in November last year, it was billed as the biggest issue. Prior to this, public sector company Coal India’s Rs 15,199-crore public issue was the largest. Earlier this year in May, state-owned insurer Life Insurance Corporation raised Rs 21-000 crore. Paytm has no promoter stake. Public holds 100 per cent stake in the company. Paytm has lost 58.8 per cent in the year-to-date period. The BSE benchmark index, Sensex, in the same period has gained 4.55 per cent.Antfin (Netherlands) Holding B.V.; SVF India Holdings (Cayman) Limited; SAIF III Mauritius Company Limited; Alibaba.Com Singapore E-Commerce Private Limited; SAIF Partners India IV Limited; BH International Holdings are foreign investors Paytm, according shareholding pattern available on BSE; Canada Pension Plan Investment Board is the foreign portfolio investor (FPI).Antfin (Netherlands) Holding B.V. is the single largest shareholder with 24.88 per cent stake; China’s Alibaba Group holds 6.26 per cent; Antfin is the fintech affiliate of Alibaba Group.Masayoshi Son-led SoftBank has invested SVF India Holdings held 17.45 per cent in before selling 4.5 per cent on Wednesday.As the lock-in has expired 85.76 per cent of the outstanding shares are now free to trade.Paytm’s consolidated loss has widened to Rs 593.9 crore in the July-September period of this financial year; revenue from operations increased by about 76 per cent to Rs 1,914 crore.Investor fury notwithstanding, some brokerages such as J P Morgan, Morgan Stanley and Goldman Sachs are bullish on the stock.Founder Vijay Shekhar Sharma earlier this week had assured investors that the company is on the right path to profitability and free cash flows.Post a comment Featured Video Of The DaySensex Rallies Over 900 Points, Tracking US Stocks Best Performance Since 2020
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