Paytm shares continue to slide, down 25% in last six trading sessions
Shares of Paytm have now declined 77 percent from their IPO price of Rs 2,150.
Shares of One 97 Communications Ltd., the parent company of Paytm fell over 9 percent on Tuesday after reports suggest that the National Payments Corporation of India (NPCI) is considering imposing a limit on payments by UPI apps.
The stock is also declining on heavy volumes.
According to reports, NPCI, which manages UPI, Bharat Bill Pay, RuPay and other digital products, is in talks with the Reserve Bank of India (RBI) about implementing its proposed December 31 deadline for limiting player volume to 30 percent.
After the imposition of the limit, users may not be able to make unlimited payments by UPI apps.
There are also worries of a supply overhang on the stock after its lock-in period ended last week on November 15.
Shares of Paytm have now declined 77 percent from their IPO price of Rs 2,150.
Japan’s Softbank Group, which has been an early investor in the payments services provider, on November 17, sold a 4.5 percent stake in the company at a price of Rs 555.67 through a block deal.
Softbank sold 29.35 million shares for a total consideration of $200 million. Softbank owns 12.95 percent stake in Paytm post block deal. There is a 60 day lock in for further sale of Softbank stake.
Paytm has said that the company is focusing on achieving the September 2023 target of achieving breakeven on an adjusted EBITDA basis.
Among other major stakeholders, Alibaba.Com Singapore E-Commerce Pvt. Ltd., which owns 6.26 percent while Antfin (Netherlands) Holding BV has a 24.88 percent stake.
Shares of Paytm are trading 9 percent lower at Rs 488.05.
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