Paytm Shares Crash 13% After Initial Surge, Profit Booking Triggers Sell-off
Business
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Moneycontrol•23-01-2026, 16:08
Paytm Shares Crash 13% After Initial Surge, Profit Booking Triggers Sell-off
- •Paytm shares initially surged over 3% but later fell 14% from their intraday high, closing down 9.53% at ₹1140.75 on BSE.
- •The sell-off was primarily due to profit booking despite Investec initiating coverage with a 'buy' rating and a target price of ₹1550.
- •A key concern is the uncertainty surrounding the extension of the Payment Infrastructure Development Fund (PIDF) beyond December 2025, which accounts for 20% of Paytm's operating profit.
- •Investec's bullish outlook is based on Paytm's strong tech capabilities, merchant relationships, and potential for high-margin credit-linked businesses.
- •Paytm shares, listed at ₹2150 in November 2021, have never reached their IPO price and hit a record low of ₹310 in May 2024.
Why It Matters: Paytm shares saw a significant drop due to profit booking and PIDF uncertainty, despite a 'buy' rating from Investec.
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