Shares of Paytm owner One97 Communications Ltd on January 19 ended at a record low with shares closing below Rs 1,000 a piece for the first time since listing.
During the day, the scrip hit an all time high of Rs 990, down 54% from its issue price of Rs 2,150. The stock was listed in November last year. Since listing, the stock eroded investors\’ wealth over Rs 74,000 crore. stock
Analysts believe recent indications that the US Federal Reserve may increase interest rates earlier than had been foreseen have impaired the valuations of new age/tech companies across the globe.
\”Fed tightening and increased tapering are definitely playing out on high valuations. The biggest effect has come on some of the new age, new tech companies in the US and also in India\” analyst says.
Investors sentiment was down after recent downgrades by foreign securities firms have dampened sentiment among investors. Macquarie Research retained its underperform rating, but cut its target price by 25 percent on Paytm to Rs 900 from Rs 1,200 earlier.