Paytm Share Price News Today : On the last day of trading, the open price for Paytm was ₹463, while the close price was ₹. The stock reached a high of ₹496.25 and a low of ₹462 ,during the day. The market capitalization of Paytm is currently ₹31.56Tcrore. The 52-week high for the stock is ₹998.3, while the 52-week low is₹395.
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KEY DATA ANALYSIS
There has been a lot of change in the fortunes of Paytm in the last one week.
According to Bloomberg data, One 97 Communications stock had 9 ‘buy’ calls and 5 ‘hold’
calls on January 30, with a consensus target price of Rs 960. Now, it has 6 ‘Buy’ calls,
4 ‘Hold’ and 5 ‘Calls’. After the RBI decision, brokerage firms have given ‘sell’ rating
and have reduced the consensus target price to Rs 780. For current market price click here
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ABOUT PAYTM APPLICATION
News reports also said the Reserve Bank of India may consider cancelling Paytm’s banking licence, as early as next month, once the depositors money is safe. The banking regulator halted most of the firm’s banking business after multiple warnings over the past two years on dealings between its payments app and banking unit.
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Why Paytm Share Price is Falling
#1 Massive Block Deal
Paytm shares were expected to be under pressure today after Reuters reported yesterday that SoftBank Group Corp will sell shares worth up to US$215 m (Rs 17.5 bn) via a block deal.
A crash of 10% though was brutal.
As of September 2022, SoftBank had a 17.5% stake in the fintech company. The stock is being sold in a range of Rs 555-601.45 per share, according to a term sheet.
The lower end of the range was at a 7.7% discount to yesterday’s closing price. The final price in the sale will be set later today.
This is just one of the block deals which Paytm has seen in the past couple of months. Earlier, SoftBank booked nearly US$50 bn in losses by selling Paytm shares.
The block deal comes a day after the lock-in period for Paytm investors ended. Which brings us to the next reason…
#2 Lock-in Period Expiry
Pre-IPO investors’ lock-in period for Paytm expired earlier this week on 15 November.
When shares are freed up in the open market, the stock usually sees a sharp fall. In Paytm’s case, around 86% of its outstanding shares were in the lock-in period.
There was always a risk of insiders and pre IPO-funds selling on expiry of the lock-in. This was one key reasons for the ferocious fall in Paytm.
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CONCLUSION
Paytm share price show good recovery from 408 to 496 . If you have paytm share price between 700-800 then you need to hold of minimum 1 to 3 month to reach there.
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