INSUBCONTINENT EXCLUSIVE:
Paytm's initial public offering (IPO) was priced at Rs 2,150.Paytm, the Indian digital payments startup whose stock has slumped 71% since
its November market debut, had its price target cut further by a Macquarie Capital Securities (India) Pvt
analyst who was early to predict the company's troubles.Macquarie's Suresh Ganapathy cut his price estimate to Rs 450 ($5.90) from Rs 700,
citing lower valuations for fintech companies globally
He didn't change his earnings or revenue estimates for Paytm, which he rates underperform
The stock rose to 634.05 rupees on Wednesday.Paytm pulled off the largest-ever initial public offering in India, but has since faced many
Ganapathy cited fintech regulations and stricter compliance norms as potential headwinds -- on Friday, the Reserve Bank of India barred the
company's Paytm Payments Bank venture from accepting new customers, adding pressure on the stock.The average 12-month price target among
nine analysts covering Paytm is Rs 1,203, according to data compiled by Bloomberg
Ahead of the listing, Macquarie analysts including Ganapathy initiated coverage with an underperform rating and a price target of Rs 1,200
The IPO was priced at Rs 2,150.The initial public offering by One 97 Communications Ltd., the parent company for Paytm, had been touted by
some as a symbol of India's growing appeal as a destination for global capital, particularly for investors looking for alternatives to
China.India's Unified Payment Interface, which allows the instantaneous transfer of funds, has an open architecture
Hence, a large user base does not necessarily make a particular service provider more competitive than others on the system, according to a
note from Moody's Investors Service.“In addition, India's major banks have significantly beefed up their digital product offerings and can
withstand the competition from fintechs,” Moody's analyst Srikanth Vadlamani wrote in the note on Thursday.(This story has not been edited
by TheIndianSubcontinent staff and is auto-generated from a syndicated feed.)
