What will the Paytm investor do with the falling share price?
Shareholders are worried about the falling price of Paytm’s stock. About 40% of the share price has fallen from the IPO price. Investors should add more shares to bring down the average share price. Or they sell shares or look for a support level to buy more Paytm stock.
Paytm is an Indian multinational technology company that specializes in digital payment systems, e-commerce, and financial services based in Noida. Paytm offers online mobile recharges, utility bill payments, travel, movies, and events bookings as well as in-store payments at grocery stores, fruits and vegetable shops, restaurants with the Paytm QR code. As of 2020 (WikiPedia) Paytm is valued at US$16 billion making it one of the highest valued fintech companies in the world.
Softbank Vision Fund holds 19.63% shareholding of the company, Berkshire Hathaway holds 2.76% of equity shareholding etc. In addition, the Reserve Bank of India approved Paytm license to introduce the Paytm payments bank as a separate entity.
Why can’t the share price of Paytm go above the IPO price of Rs 2150, given the strong fundamentals of the company? The Paytm stock had listed at Rs 1,955—a discount of 9% from its issue price of Rs 2,150. And now trading at 1170. If we compare the Paytm IPO price of 2150 till date, the current share price is 1170, a fall of almost 1000 points.
I think 1150 will be strong support for Paytm stock. Breaking 1150, the next support will be near 1070. These are support levels that investors should check. Follow us on Twitter and Facebook to get more live updates in real-time.