In the past three days, its share price increased 32%
In October, Paytm recorded a 131% rise in its gross merchandise value (GMV), at around INR 83,200 Cr ($11.2 Bn).
Investors are awaiting the July-September financial results scheduled to be announced on Saturday, November 27.
Shares of One 97 Communications, the parent company of Paytm, continued their gaining streak for the third consecutive day as investors took to value buying and bought the shares at low prices.
Today (November 25th, 2021), its stock price on the BSE closed at INR 1,796.55, higher by INR 43.40 or 2.48% from its previous close.
The share price soared as much as 7% during the day to touch an intra-day high of INR 1,875.
In the past three days, its share price increased 32%. The rise in share price comes after investors took to value buying post a 37% decline from the issue price (INR 2,150) in the first two trading sessions.
Further, according to a Bloomberg report, major institutional investors BlackRock Inc and Canada Pension Plan Investment Board, who had subscribed to Paytm’s shares in the anchor round bought more Paytm shares on Tuesday and Wednesday.
This interest from the marquee institutional investors report is also expected to have boosted the overall investor sentiments on Thursday, analysts said.
The shares of the fintech giant traversed through the green and red territories during the day as after a gap-up opening, it dipped to an intra-day low of INR 1,710.85 before returning to the positive zone.
Its market capitalisation at the end of Thursday’s trade was INR 1.16 Lakh Cr ($15.6 Bn).
Although the shares have gained significantly in the past three days after a weak listing on November 18, the price is still much lower than the issue price of INR 2,150.
Investors are now awaiting the financial results for the quarter ended September scheduled to be announced on Saturday, November 27.
In a regulatory filing on November 21, Paytm said that it recorded a 131% rise in its gross merchandise value (GMV) in October, at around INR 83,200 Cr ($11.2 Bn).
During the same period last year, the company’s GMV stood at INR 36,000 Cr.
On the lending business, the filing said that the segment continued to show very strong growth as a result of rapid scale up of all of our lending products, including Postpaid, consumer loans and merchant loans.
Although running into losses, Paytm witnessed a 62% growth in its revenue from operations during Q1 FY22 at INR 890.8 Cr, backed by strong growth from payment and financial services. Its net loss for the quarter increased 34% to INR 381.9 Cr, from INR 284.4 Cr during the corresponding quarter of FY21.
Founded by Vijay Shekhar Sharma in 2000, One97 Communications began its journey as a value-added service provider. It evolved over the years with different fintech solutions to become an online mobile payments firm.
