Paytm Shares Decline As Anchor Lock-In Period Expires

Shares of One97 Communications Ltd. fell after its pre-IPO investors' lock-in period expired on Nov. 15.

Shares of the operator and owner of payments platform Paytm fell 4.1%, the most since Sept. 26, as anchor investors holding shares of the company since its Rs 18,300-crore initial public offering were allowed to sell.

The biggest shareholders in Paytm’s parent company are Alibaba Group Holding Ltd. and its fintech affiliate Ant Group Co., as well as Japan’s SoftBank Group Corp.

Shares of Paytm declined for the second day in a row to as low as Rs 600 apiece, a 72% discount to its IPO price of Rs 2,150. Its trading volume was 4.2 times the 30-day average.

The stock ended the day 4% lower at Rs 601.45.

Of the 12 analysts tracking the company, six maintain a 'buy', three suggest a 'hold' and three recommend a 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 41.8%.