Paytm listing debacle sparks concern from investors for other IPOs: Financial Times
IANS 30 November 2021
Brokerage house JM Financial has given a ‘sell call for One97 Communications-owned Paytm, with a target price of Rs 1,240.
"Paytm faces stiff challenges in its customer acquisition engine, which would slow down its revenue growth in the core payments business while scaling up of its related ecosystem businesses (commerce, Cloud and financial services) leaves much to be desired," the brokerage said.
"In our view, Paytm will need to keep funding its ‘MTU' growth and thus the road to profitability largely relies on the growth trajectory of other businesses," it added.
Also, Paytm will need to adapt itself to this evolving regulatory environment for digital lenders, it said.
Regulation, in its view, is likely to get more stringent than conducive.
The payment service provider company's shares were listed on the exchanges on November 18, 2021.
On the listing day, the company's shares closed 27 per cent lower at Rs 1,564, marking a disappointing debut. The company had an offer price of Rs 2,150.
However, lately, the company's stocks have made partial recovery of its initial losses. On Monday, the company's shares closed 4.24 per cent lower from the previous close at Rs 1,706.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
IPO Review: Star Health
Moneylife Digital Team 29 November 2021
Star Health and Allied Insurance Company Ltd (Star) is the largest private health insurer in India with a share of about 16% of the Indian health insurance market in FY20-21. It commenced operations in 2006 and its business...
Weekly Moneylife Indices & Sector Trends
Moneylife Digital Team 26 November 2021
From 18th November to 25 November 2021, ML Micro-cap Index rose 4%. ML Small-cap Index and ML Mid-cap Index rose 2% and 1%, respectively. ML Large-cap Index ended flat. ML Mega-cap Index, the NIFTY and the...
Tips Industries Ltd: September ’21 Results Update
Moneylife Digital Team 26 November 2021
Tips Industries Ltd (TIL) declared its quarterly results for Q2FY21-22 on 29 October 2021. We had discussed the company’s business model here. Revenues increased 241% quarter-on-quarter (q-o-q) to reach Rs96 crore and its operating...
Tech Stocks: Take a Basket Approach
R Balakrishnan, 26 November 2021
The onset of the pandemic has been a blessing as far as innovation and use of technology is concerned. There is an explosive growth in internet usage for everything—from trade and commerce to personal fitness. The battle for...
Free Helpline
Legal Credit