BackPaytm shares list at a discount. Should you sell, hold or accumulate?
Paytm shares made stock market debut on Thursday at 9% discount as against its IPO issue price of ₹2150 apiece
PremiumPaytm share price listed today at discount of 9% at ₹1950 on NSE against its IPO issue price of ₹2,150 per equity share. The three-day initial public offering (IPO) of Paytm's parent One97 Communications was launched on November 1 that concluded on November 3 with a price band of ₹2,080-2,150 per share.
Stock market experts' advise to investors who got Paytm shares through allotment is to exit on bounce back maintaining stop loss below ₹1720 per share levels. They said that those who want to add fintech stock in their portfolio are advised to look at other option.
Speaking on Paytm share listing, Parth Nyati, Founder at Tradingo said, "The company has been loss-making and there is no sign to turn profitable in near future. Aggressive investors who got the allotment can hold the stock with a long-term view however the investors who applied for listing gain can exit on the bounce back. New investors are advised to look for other opportunities where other new edge companies can perform much better than Paytm. We feel due to the brand the company sought high valuation and it might see a correction in the near term."
Incorporated in 2000, One97 Communications is India's leading digital ecosystem for consumers and merchants. It offers a range of services to the users - payment services and financial services.
Advising investors to look at other options in fintech segment, Santosh Meena, Head of Research at Swastika Investmart Ltd said, "I would suggest only aggressive investors hold this stock for the long term amid uncertainty where I believe Bajaj Finserv is a much better option to play on Fintech businesses because Bajaj Finserv has a proven track record with great comfort of valuations compared to Paytm. Those who played for listing gain should keep a stop loss below ₹1720, which is 20 per cent lower than the issue price."
Meanwhile, brokerage firm Macquarie Research has initiated an underperform rating on Paytm owner One97 Communications ahead of its listing on Thursday, saying its business model lacks focus and direction. It has reduced its target price to ₹1,200 a share, down 40% from its issue price of ₹2,150.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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