Selling emerged after a foreign brokerage reportedly initiated coverage on the scrip with an 'Underperform' rating and a price target of Rs 900. The brokerage house said that it sees "no sign of headwinds abating". The target price is a 25% lower from current levels.

Earlier this month, insurance regulator IRDAI rejected Paytm's proposed buyout of general insurance company RahejaQBE. The rejection is likely to hamper investment plans of several domestic and multinational insurance companies.

The stock entered the bourses on 18 November 2021. It was listed at Rs 1955, a discount of 9.07% compared with the initial public offer (IPO) price of Rs 2150. The counter has declined nearly 45% from its IPO price.

The IPO of Paytm was subscribed 1.89 times. The issue opened for bidding on 8 November and it closed on 10 November. The price band of the IPO was fixed at Rs 2080 to Rs 2150 per share.

Paytm is one the largest payments platform in India based on the number of consumers, number of merchants, number of transactions and revenue ended March 2021. The company launched Paytm in 2009, as a mobile-first digital payments platform to enable cashless payments for customers giving them the power to make payments from their mobile phones. It started with bill payments and mobile top-ups as the first use cases, and Paytm Wallet as the first Paytm Payment Instrument.

The company reported consolidated net loss of Rs 473.50 crore in Q2 FY22, higher than net loss of Rs 436.70 crore in Q2 FY21. Net sales jumped 63.64% to Rs 1086.40 crore in Q2 FY22 over Q2 FY21. Pre-tax loss stood at Rs 471.50 crore in Q2 FY22, higher than pre-tax loss of Rs 428.30 crore in Q2 FY21. Revenue growth was driven by 52% growth in non-UPI payment volumes (GMV) and more than three times growth in financial services and other revenue.