Paytm’s poor on the stock markets continued on Monday as the shares of its parent company One97 Communications fell over 17 per cent at around 12 pm.

The stock plunged 17.45 per cent on the Bombay Stock Exchange, declining for the second straight session after falling nearly 28 per cent on Thursday.

Paytm shares fell to Rs 1,376.35 on the National Stock Exchange at 11:40 am, down 11.82 per cent over its previous closing price. On the BSE, shares of Paytm slipped 12.73 per cent to Rs 1,365.05. On the BSE, Paytm shares opened at Rs 1,500 and then slid further as investor sentiment remains weak. By 12 pm, shares of Paytm had plunged over 17 per cent.

The company’s slumped despite a sharp rise in its gross merchandise value, which more than doubled to Rs 1,95,600 crore on account of higher festive season spends.

Explained: Why Paytm’s mega IPO has got weak response from big investors

PAYTM’S BAD RUN CONTINUES

Paytm’s share price has crashed over 40 per cent in just two market sessions, compared to its IPO issue price of Rs 2,150. In the previous session, Paytm’s stock market disaster eroded investors’ wealth worth Rs 38,000 crore. The amount of losses increased further as Paytm’s stock fell again today.

Investors remain concerned about the stock after multiple analysts raised concerns over the stock’s high valuation. Foreign brokerage firm Macquarie recently wrote a detailed research note, criticising Paytm’s high valuation and future challenges.

“Paytm has been a cash-burning machine, spinning off several business lines with no visibility on achieving profitability. Unless Paytm lends, it can’t make significant money by merely being a distributor,” the research report said.

WHAT BROKARAGES SAY

A number of other brokerages have also expressed concern about the company’s stock, given the weak sentiment. Some analysts expect Paytm share price to remain subdued in the short to medium term as investors are approaching it with caution due to the current volatility and overall market sentiment.

Paytm’s stock market debut on Thursday was one of the worst among recent new-age digital startup IPOs, including Zomato, Policybazaar and Nykaa. The stock lost more than one-fourth of its value on listing day and fell further today.