Paytm shares rollercoaster ride continues, all eyes on quarterly earnings1 min read . Updated: 26 Nov 2021, 12:50 PM IST
- While Paytm share price has bounced back over the past three days, it is still well below the IPO issue price
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Shares of digital payments giant Paytm have been on a wild ride since its weak stock market debut last week and now all eyes are set on Saturday when it reports earnings in the wake of its largest ever initial public offering (IPO) in the country. Paytm’s quarterly and half-yearly results announcement on Saturday will be followed by an earnings call.
While the company’s shares have bounced back about 30% over the past three days, they are still well below the IPO issue price as investors continue to weigh its longer-term prospects against recent losses. Paytm’s early tumble ranked among the worst debuts by a major technology company since the dot-com bubble era of the late 1990s.
Despite the challenges, Paytm’s backers include the likes of Warren Buffett’s Berkshire Hathaway Inc. and Masayoshi Son’s SoftBank Group Corp. BlackRock Inc. and Canada Pension Plan Investment Board were among so-called anchor investors in the IPO that bought more shares on Tuesday and Wednesday, as per a Bloomberg report.
The three-day 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.
Paytm Chief Executive Officer Vijay Shekhar Sharma, who made no secret of his desire for his company to surpass the long-standing IPO record set by Coal India Ltd. in 2010, said last week that the stock’s early tumble was “no indicator of the value of our company."
The country's biggest IPO was subscribed 1.89 times with institutional buyers including FIIs flooding the share sale with offers seeking 2.79 times the number of shares reserved for them. Paytm IPO was greater than miner Coal India's ₹15,000 crore offer a decade ago.
(With inputs from Bloomberg)
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