👉 This is why Paytm is Crashing!!


From being one of the biggest IPOs to tumbling drastically, Paytm's journey so far has been nothing but eventful. A year has passed since its listing, and the stock is down 65% since then and ~70% from its peak. Find out the reasons behind the brutal dip in this edition of Tickertalk. Last Update 26/11/2022 - Manish Thole
Meanwhil 
From being one of the biggest IPOs to tumbling drastically, Paytm's journey so far has been nothing but eventful. A year has passed since its listing, and the stock is down 65% since then and ~70% from its peak. Find out the reasons behind the brutal dip in this edition Read. ⬇️




Paytm tumbling down 🎢











15th November 2022 marked the expiry of Paytm's lock-in period. It is not unusual for a company's shares to fall when an IPO's lock-in period expires and shares are freed up to trade in the open market. ~86% of Paytm’s outstanding shares were in the lock-in period. The stock fell 4% primarily due to the exit of the pre-IPO investors. On the next day, SoftBank sold 4.5% of its stake in Paytm in a block sale. These two developments brutally dragged the stock 10%!
15th November 2022 marked the expiry of Paytm's lock-in period. It is not unusual for a company's shares to fall when an IPO's lock-in period expires and shares are freed up to trade in the open market. ~86% of Paytm’s outstanding shares were in the lock-in period. The stock fell 4%, primarily due to the exit of the pre-IPO investors. On the next day, SoftBank sold 4.5% of its stake in Paytm in a block sale. These two developments brutally dragged the stock 10%! 😞

While some analysts also attributed the fall to the disappointing quarterly results and concerns about high valuation, the most recent development that battered the stock is a report by Macquarie. It stated that Reliance's Jio Financial Services (JFS) could threaten existing players like Paytm and Bajaj Finance. JFS will bring with it a competitive advantage of a strong network of 20m and consumers, an AAA credit rating of Reliance that will help attract funding at low costs, and an already available NBFC license. 😮

News about the National Payments Corporation of India's talks with the RBI about implementing a limit on player volume to 30% also hurt investor sentiment. If implemented, users may not be able to make unlimited payments through UPI apps exceeding the limit. 😶

In their first Annual General Meeting, CEO Vijay Shekhar Sharma assured shareholders that the company is on its way to becoming profitable by September 2023. Do you think Paytm can manage a turnaround that will help regain glory? ⏳










 Paytm — Can the stock fall further?

 Let Us Know In The Comments👇


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