Paytm shares in tailspin after series of block deals

Paytm Share Price: Paytm shares on Thursday tanked around 9 per cent intraday on the back of a series of block deals. According to exchange data, as many as 19.20 million shares of One97 Communications, the parent company of Paytm, changed hands.

Paytm stocks opened at Rs 574.9 on NSE, down nearly 1 per cent from the previous close of Rs 579.15. The selling pressure dragged the counter to the day's low of Rs 528.10, crashing 9 per cent. At 3 PM, the scrip quoted Rs 544 apiece on NSE.

This is the steepest fall in Paytm share price since November 22 when the stock sank 12 per cent.

According to technical analyst Nilesh Jain, investors should stay away from Paytm. He, however, said that from a trading perspective, one can take a position for a target price of Rs 600.

Paytm share price has fallen by over 70 per cent from the IPO issue price of Rs 2,150.

In another related development, the fintech company recently informed stock exchanges about its Q3 performance update ahead of the October-December quarter results. The company disbursed 3.7 million loans worth Rs 3,665 crore (USD 443 million, y-o-y growth of 330 per cent). The number of loans disbursed during the month was up 117 per cent.

Meanwhile, brokerage firm Morgan Stanley said that Paytm will be a key beneficiary of the government's Unified Payments Interface (UPI) incentive scheme. The government recently approved the incentive scheme of Rs 26 billion for the promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (P2M) for FY23, compared with Rs 15 billion in FY22.

"Huge commitment by GOI Cabinet to push Digital Payments thru UPI and RuPay. The #DigitalIndia mission of our government will bring long term benefits to our economy," Vijay Shekhar Sharma, Founder, CEO & MD of Paytm, tweeted.

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Paytm will be key beneficiary of India's UPI incentive scheme: Morgan Stanley