New Listing: Paytm shares slip 25%, Sapphire Foods stock down 7% on debut – what should investors know

The former had made a weak market debut, while the latter somewhat witnessed listing gains during its start of stock market journey.

India’s largest payment platform company Paytm was listed at around a 9 per cent discount: PTI

The shares of two newly listed companies — One-97 Communications-backed Paytm and Sapphire Foods India declined at the market close on Thursday. The former had made a weak market debut, while the latter somewhat witnessed listing gains during its start of stock market journey.

Individually, Paytm shares closed almost at a 52-week low of Rs 1564 per share, down 25 per cent from its listing price of Rs 1955 per share, while slipped 37.5 per cent from its issue price of 2150 per share on the BSE on Thursday. The stock had made a 52-week high of Rs 1961.05 apiece on the BSE.

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India’s largest payment platform company Paytm was listed at around a 9 per cent discount of Rs 1955 per share on the exchanges on Thursday.

Similarly, Sapphire Foods shares closed over 7 per cent lower to Rs 1216.05 per share amid profit booking. However, the stock had listed at over 11 per cent higher premium to Rs 1311 per share on the exchanges, however, failed to shine and ended red.

The stock has closed over 3 per cent higher from its issue price of Rs 1180 per share at the upper end on the BSE.

The majority of the analysts, including Zee Business Managing Editor Anil Singhvi had expected that Paytm to make a tepid to weak debut, while Sapphire Foods to grow marginally on listing. However, they urge the investors to hold both the shares on a long-term basis for good returns.

Singhvi had said, Sapphire Foods has strong brands like KFC and Pizza Hut under its belt. Besides, an impressive track record, strong growth potential, profitability at an operational level, and reasonable valuations would work for this IPO, the managing editor added.

While for Paytm, Singhvi had mentioned despite being a loss-making company, the company has robust brand equity and it is also involved in multiple businesses from digital payments to financial services such as credit, insurance, mutual funds among others.

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