Paytm shares hit all-time low over 60%

Shares of fintech major Paytm plunged over 3 percent to hit an all-time low of Rs 728.50. The market cap of the company slipped below Rs 50,000 crore on the BSE. The IPO of Paytm was subscribed 1.89 times.

Paytm is one the largest payments platforms in India based on the number of consumers, number of merchants, number of transactions and revenue ended March last year. Shares of Paytm’s parent One97 Communications have declined 5.3% in three trading sessions from its previous closing low of Rs 1339.60.

Currently, the stock is trading 63 percent lower from its all-time high of Rs 1,961.05. According to a recent report, Paytm's revenue is likely to grow at more than 35 percent CAGR over FY22-FY24E and more than 25 percent over FY24-26E which is well above the industry average.

The stock entered the exchanges in November last year. It was listed at Rs 1955, a discount of 9.07% compared with the initial public offer (IPO) price of Rs 2150. The counter has declined 41% from its IPO price and has fallen 35% from its 52-week high of Rs 1961.05 hit on the first day.

The company reported consolidated net loss of Rs 473.50 crore in Q2 FY22, higher than net loss of Rs 436.70 crore in Q2 FY21. Net sales jumped 63.64% to Rs 1086.40 crore in Q2 FY22 over Q2 FY21. Revenue growth was driven by 52% growth in non-UPI payment volumes (GMV) and more than three times growth in financial services and other revenue.