Paytm stock rose for a second day on Wednesday, the payments company shares rose by 17.3%. However, it is still falling short of its issue price by over 18%. It still perfomed better than yesterday as then it was 36.7% lower than its initial price.
The news came easing a sell off that saw the digital payments firm lose about a third of its value in its first two trading sessions.
On Wednesday, One 97 Communications Ltd., Paytm’s parent company, raised $2.5 billion in India’s largest-ever IPO, which included global institutions like BlackRock Inc. and the Canada Pension Plan Investment Board as cornerstone investors. Last Thursday, the stock dropped 27%, making it one of the worst debuts by a big technology company in history.
On the BSE, the Paytm stock was trading 15.1% higher at $23.12 at 2:40 p.m IST. Paytm shares were available at a 20% discount to their issue price. One97 Communications shares were trading at $23.07 on the NSE, up 14.9% from their previous close.
Paytm’s poor performance occurred after some opponents questioned the company’s valuation at the time of its initial public offering.
In a note, BI strategists Gaurav Patankar and Nitin Chanduka write that “Paytm is facing scepticism about its IPO, comparable to the first pushback that Facebook had when it listed.” “The MSCI inclusion of ‘new economy’ businesses like Paytm and Zomato bolsters India’s expanding digital ecosystem and is part of the $375 billion opportunity that we see in the country.”