November 30, 2022

Paytm investors don’t seem to be in a rush to sell, analysts say With big investors trusting Paytm, there is no rush to sell shares even after the lock-in ends

Paytm’s stock fell sharply. Investors have lost nearly 60 percent in the stock over the past year.

Big investor trust on Paytm

Paytm investors, who lost more than half of their investment in a year, are not yet thinking of leaving the company. The lock-in period for shares in Paytm ended on Tuesday, but with no major sell-off in the stock, investors seem to be in no rush to sell shares in the company given Paytm’s long-term prospects. . Analysts say pre-IPO investors including Berkshire Hathaway, SoftBank, Elevation Capital and Alibaba are in no rush to sell.

Expired lock-in period

The lock-in period for 86 per cent stake in Paytm ended on Tuesday. Now these shares can be sold, but the impact on the shares has been seen very little. Regarding Paytm, Avinash Gorakhskar, research director at Profitmart Securities, said, “End of Paytm’s lock-in period has no impact on share prices, as investors remain confident in the company’s strong performance.”

Paytm’s pre-IPO investors, such as Warren Buffet (Berkshire Hathaway), SoftBank, Elevation Capital and Alibaba are considered long-term investors. That means they will stay in the company for a long time. And Rahul Sharma, co-founder of Equity 99 Advisors, said, “Major investors in digital companies led by Vijay Shekhar Sharma are in no rush to sell shares.”

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Half the amount of investors

A year ago today, Paytm’s stock was trading above 1550. Currently, the share is seen reaching close to 600. Shares fell sharply today. Even at Tuesday’s closing level of 626, investors have lost nearly 60 percent of their money in a year. In May, the stock touched below 550. However, since then the stock has remained above the 600 level.

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