paytm or ( pay through mobile ) is one of the best fintech and e-commerce company of india. however due to some consequences currently its facing some losses in the stock market as its shares price falls drastically, so today in this article you'll get to know about some of the reasons why the price of paytm shares falling down consistently from the date of listing and how much shares had been issued by the paytm ipo and so on.
one97 communications limited is the parent company of paytm and along with that it also has some other subsidiaries like paytm money limited, paytm e-commerce, paytm payments bank, paytm mobile solutions private limited, etc. by raising the investment of around 18,300 crore through initial public offerings (ipo) on the valuation of price around rs 1.48 lakh crore, it becomes the first company to raise the highest investment through ipo in india till now. the founder and the chief executive officer (ceo) of the paytm company or one97 communications limited is vijay shekhar sharma with the holdings of 9.1% of shares in the company. other than vijay sharma some of the biggest investors of one97 communications limited is chinese business tycoon jack ma's alibaba group with the share holding of around 6% in the company, and warren buffett's berkshire hathways with the holdings of around 2.6% of stake in the whole company.
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as it is one of the biggest ipo in indian history all the investors and traders were excited to trade in the shares of the paytm company. but, the excitement doesn't stand last long. as the bidding dates for the ipo was from 8th november 2021 to 10th november 2021 the price band was between 2,080 rs to 2,150 rs but it got listed on national stock exchange (nse) and bombay stock exchange (bse) at the price of 1,950 rs that is at loss of 9.3% ( 200 rs ). even after getting listed in the market the share price is disastrously keeps on falling due to some particular reasons. currently its headed to the lower side as its firstly puts the 52 week low of rs 1,151 and currently it again goes down to setup a new 52 week low of rs 875 and with the 52 week high of 1,955 rs.
reasons why paytm shares falls down.
- resigned by senior officials :-
resignation is one of the biggest reason that puts this negative impact on the shares of the company. before the launch of ipo 5 senior officials of paytm resigned from the company they are amit nayyar who was the president of paytm, rohit thakur the chief human resources officer and three other vice presidents of the organization. other than this after the ipo was launched some more chief operating officers left the job they are abhishek arun the (coo) of paytm payments bank, renu sati the (coo) of offline payments and abhishek gupta (coo) and senior vice president. as the senior officers tends to leave the company it puts a negative impact on the company and its paytm share price.
- withdrawal of funds by anchor investors :-
anchor investors are those investors who get the shares just before an ipo opens for bidding, these anchor investors are bound by the lockin period by the agreement for a particular time. as the paytm company also have four anchor investors prior to the ipo but after the ipo and lockin period ends one of the anchor investor that is from hdfc mutual funds reduced the holdings significantly from two of the schemes which again puts the huge impact on the shares of the company. and shows a great dip of share price, as this cause around 6% of loss on that date and till the month end the share price falls down to around 13% again within few days.
as the price of paytm stocks continuously move through the diminishing rate it also puts a huge impact on the mind of the investors and due to that reason many of the investors backing out from investing in the company. however the market price of the paytm stocks is a bit volatile because of traders investing and redeeming the funds in the company. the new investors cannot invest in this stock as they think the price is consistently going downwards and its not good to invest right now.
is it good time to buy paytm shares.
as the shares of this companies shows a negative response from the day one when it was listed in the market. however, the financials of the company is getting strong but very slowly as the founder and ceo of the company vijay shekhar sharma said in one of his interview that the paytm company does not go for profitablity or dividends paying for few starting years, it will firstly balance its financials properly. so the financials of the company is getting stronger as if we talk about the revenue of the company in quarterly basis so in quarter1 (q1) the revenue was around 891 crores which grows in quarter2 (q2) upto rs 1,086 crore and in third quarter it goes upto 1,456 crore rs. and if we talk about the profit and loss of the company then it is making losses consistently from last three years but in diminishing rate which means its reducing its losses and moving towards a profit making company. in 2019 the company made the loss of rs 4,182 crore, in the year 2020 it reduced its losses to the half of year 2019 that was 2,842 crore rs and in the previous year 2021 it again reduced its losses to the half of year 2020 that is 1,696 crore rs. as the company moving towards a better growing organization according to some experts investing in this company from now on would be great option for long term investors however how much time does it takes to make the hike is not known by anyone so it's still a challenge for short term investors to invest in the company. hence it means it might be a good time to buy paytm shares for long term investors.
how many shares are there in paytm.
according to some facts the organization still have around 50,000 shares which is unlisted in the company, the price of these shares would be around 2,700 rs. if we talk about the listed shares then the 89.58% of listed shares are in the hands of retail market, 9.36% of shares in the foreign financial institutions like berkshire hathways, alibaba group, etc. mutual fund schemes owns 1.06% of shares of the company however there is no promoters and other domestic institutions investments in this company.
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