On Tuesday, Paytm hit a new low of Rs 840.05, eroding more than 60 per cent of investor’s wealth compared to the IPO issue price of Rs 2,150 apiece. Buffett has lost about 35 per cent from the average cost of acquisition.
In September 2018, Berkshire had invested $300 million or Rs 2,179 crore for 2.6 per cent stake in a funding round that valued the start-up at $10 billion. According to the company’s latest shareholding data, Buffett’s investment arm held 1.56 crore, or 2.41 per cent stake, in Paytm as of December 31, 2021.
Besides Buffett’s BH International Holdings, other institutional investors like Antfin (Netherlands) Holding BV and SVF Panther (Cayman) have lost up to 55 per cent from their average cost of acquisition, which is around Rs 1,835 apiece.
However, several brokerages have target prices higher than the latest lows. Dolat Capital is most bullish on Paytm with a target price of Rs 2,530.
Global brokerage firm Goldman Sachs, which recently cut Paytm’s price target to Rs 1,600 from Rs 1,630, has further reduced it to Rs 1,460, but upgraded its rating on the scrip to ‘buy’ from ‘neutral’ post the company’s third quarter earnings.
Discover the stories of your interest
Analysts from Macquarie Capital Securities (India) Ltd cut their target price on the stock to Rs 700 apiece from Rs 900 apiece earlier.
In January, JPMorgan initiated a report on Paytm with an ‘overweight’ rating and set a target price of Rs 1,850, citing the fact that the shares are trading at a discount to its global and private peers.
For all the latest Technology News Click Here
