Paytm's stock rises 6% after snapping a two-day losing run
One97 Communications Limited had a shaky market debut on November 18, falling nearly 27% from its issue price of Rs2,150 during the day.
On the Bombay Stock Exchange, shares of a digital payments company gained nearly 6% to Rs1,435 on Tuesday (BSE). It had previously ended at Rs1,360.30 on Monday, down 35% from its previous valuation of Rs2,150.
Paytm's stock price dropped on the same day as the stock market had its largest drop since the second wave of the coronavirus disease pandemic (Covid-19). The benchmark indices had fallen by roughly 2%.
The adjustment on Tuesday is good news for Paytm, which has been accused by experts of having an overinflated valuation.
Financial experts also blame Paytm of lacking commercial focus, but Vijay Shekhar Sharma, the company's founder and CEO, remains optimistic.
According to Paytm's first operating performance report for the month of October filed at BSE, the company's gross merchandise value increased by more than two-fold to Rs1,95,600 crore in the second quarter that ended on September 30.
In the same quarter a year before, the company had a gross merchandise value of 94,700 crore.
The company will conduct its first board meeting since going public on November 27 to discuss and approve the financial performance.
Paytm's IPO, which was supported by Ant Group and was India's largest share sale, was oversubscribed 1.89 times earlier this month.
This was more than the 15,000 crore offer made by miner Coal India a decade ago.
One97 Communications, Paytm's parent business, was founded in 2000 and is India's premier digital ecosystem for consumers and merchants.