Shares of new-age tech stocks — Paytm and Zomato — were trading in the red territory on NSE in Friday's trading session following a report suggesting that Japanese investment conglomerate SoftBank is expected to sell shares in the two listed companies in small tranches in the open market, rather than through block deals, over the next few sessions.
Paytm shares hit a fresh 52-week high of Rs 898.7 in trade today, before erasing gains and tumbling 2 percent to hit a an intra-day's low of Rs 873.80, while shares of Zomato were down 1 percent to hit a day's low of Rs 74.20.
Paytm, Zomato on D-Street
In the last one month, Zomato shares have risen 19 percent, while Paytm shares have jumped 22.46 percent during the same period. The stock has been rising on improving business prospects and recent 'Buy' ratings by a host of analysts.
On a year-to-date basis, Zomato has risen 25 percent, while Paytm shares have jumped 66 per cent during the same period. Shares of Paytm hit a fresh 52-week high of Rs 898.7 on June 16, 2023. Likewise, Zomato stock hit a 52-week high of Rs 80.3 on June 12, 2023.
Why it makes sense to hold Zomato, Paytm for now
Samir Arora, Founder, Helios Capital said that when he bought Zomato and Paytm shares, he never thought that there would be this kind of run-up. “In general, for now, unless there is either a big price move or a bomb, I will keep them,” he said.
In an interview with CNBC-TV18, Arora said, “Have all kinds of stocks in a portfolio, which is what I have been saying for 20 odd years that you cannot be narrowly focused. So, for example, many of these from Paytm to Zomato, we also have, and on the other hand, we do not have the Tata Motors types.”
SoftBank may book profits in Paytm, Zomato
SoftBank was looking to book profits in these two new-age stocks following the recent rally in their share prices, according to a Moneycontrol report.
The investment bank paid around Rs 65-70 apiece for Zomato and Rs 830-840 for Paytm, the report said.
SoftBank holds an 11.17 percent stake in Paytm and 3.4 percent in Zomato, according to data compiled by Moneycontrol.
In May, SoftBank offloaded about 2 percent stake in Paytm for $120 million. Earlier this week, the Japanese investment conglomerate sold a part of its stake in Lenskart to private equity company ChrysCapital. The investment firm yielded over $70 million from the stake sale.
First Published: Jun 16, 2023 1:42 PM IST
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