The share price of a payments aggregator notched 3.42 percent gains as its promoter is looking to increase his stake in the company. Its shares reached an intraday high of ₹ 889.00 apiece and settled at ₹ 886.00.
One97 Communications (Paytm’s) CEO Vijay Shekhar Sharma said, “ There is never a day that I would not buy more equity in Paytm”
Sharma has become the largest shareholder of the company after acquiring a 10 percent stake from AntFin, thereby increasing his stake to 19.42 percent, and he is looking to increase his stake further.
Paytm was India’s biggest IPO, until the Life Insurance Corporation of India (LIC) came up with its IPO. Paytm’s 18,000 crore issue was priced at ₹ 2,150 per share. However, it was not received well, owing to valuations and fell nearly 80 percent from its issue price to ₹ 438.35 apiece. Since then, it has recovered by 102 percent to its current price of ₹ 886.00 apiece, amid buying by its promoter, but is significantly below its issue price.
Recently, Bernstein assigned an outperform rating on the stock with a price target of ₹ 1,100.00. This translates to an upside of 24.15 percent, compared to its current share price. Ahead of Bernstein, Citi and Goldman Sachs have a price target of ₹ 1,200.00 each, translating to an upside of 35.44 percent
With a market capitalization of ₹ 54,349 crores, One97 Communications is a large-cap company. It has a negative return on equity of 12.76 percent and an ideal debt-to-equity ratio of 0.02.
Written by Simran Bafna
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