New Delhi:

Paytm parent One97 Communication today plummeted to a fresh low of Rs 476 on BSE as the sell-off continues after its pre-IPO (initial public offering) shares became free to trade.

After opening weak, the stock plunged to record low levels of Rs 476 in the morning deals. It attempted some recovery from low levels but the sentiment remained weak. The stock is trading at Rs 480, still a steep 10 lower than its previous close.

After opening weak, the stock plunged to record low levels in the morning deals. It attempted some recovery from low levels but the sentiment remained weak.

Paytm has been disappointing investors since its IPO last year. Last week early investor Softbank had sold 4.5 per cent stake at Rs 555 – Rs 601 range which was at a discount. The largest investor selling its stake after such downfalls has weakened the sentiment on this counter, Rahul Sharma, Research Head, Equity 99, has said.

Analysts noted that an excess supply of shares in the market is weighing heavy on Paytm. A large supply of shares is from investors from pre-IPO placements as well as non-promoter investors, analysts added.

According to SEBI rules, pre-IPO investors need to hold the shares post-listing for upto six months to one year from the IPO. This lock-in period expired on November 15.

“Markets are not respecting the non-profit making company valuations which are not justified as of now,” Prashanth Tapse – Research Analyst and Senior vice-president, Research – Mehta Equities, said.

Paytm was listed on November 18 last year. Compared to the IPO prices of Rs 2,150 a share, investors have suffered huge losses as the stock is trading at Rs 483.

Other new-age stocks, listed in November-December last year, are facing the same fate in the market today.

Fashion retailer Nykaa is trading at Rs 177.30, down 3.41 per cent. Policybazaar is trading over 1 per cent lower at Rs 407.25.

The lock-in period in both stocks has expired.