Paytm shares hit record low on Monday; market cap below Rs 50,000 Cr
Financial technology firmon Monday saw its shares decline as much as 65.1 percent from its listing price last year, to a record low of Rs 751, as a broader sell-off in the Indian markets weighed on the stock and exacerbated the decline in its shares following concerns around the Noida-based company's business model and fundamentals.
Paytm's shares have been in somewhat of a freefall ever since the company debuted on the stock exchange in November 2021, at Rs 2,150 per scrip - a valuation several analysts say was not justified. Concerns have also been raised around a lack of clarity on Paytm's path to profitability and its business model.
The Street has also opined that Paytm does not stand out anymore mainly because of rising competition in the sector, even though it commands a large user base. In response, Paytm has been doubling down on its lending business which analysts and financial experts have highlighted as being one of the company's most profitable endeavours.
Shares of One97 Communicatons, Paytm's parent company, have fallen 4.31 percent since Friday's close. They hit a record low of Rs 751.0 on Monday.
The broader Indian market closed in the red for a fourth consecutive session on concerns around global oil prices, which hit their highest since 2008 in the wake of the Ukraine-Russia conflict. The S&P BSE Sensex fell 2.74 percent, while the blue-chip NSE Nifty 50 Index lost about 2.35 percent.
At 648.52 million shares outstanding, according to Bloomberg data, Paytm's market cap stands at Rs 48,703 crore.