Paytm parent One97 Communications' shares gave up initial gains on Monday amid weakness in the overall market. At the current price, the Paytm stock is available at a discount of around 24 percent to its issue price. Paytm shares have seen wild swings in recent times following a series of losses after a weak listing last month.

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The Paytm stock dropped as much as 1.1 percent to Rs 1,631.8 on BSE, sliding into negative territory after rising to as high as Rs 1,679 earlier on Monday.

Sandeep Bhatia, Country Head India at Macquarie Group, told CNBC-TV18 he remains cautious on Paytm. "That's one stock that on which we have initiated coverage," he said.

Macquarie Capital Securities has an 'underperform' rating on One97 Communications with a target price of Rs 1,200.

The brokerage said the company's business model lacks focus and direction.

Paytm recently got it's first ‘buy’ rating from a brokerage. Dolat Capital Market has a 'buy' call on Paytm shares citing the company's transition to a manufacturer of financial services from an agent, its cross-selling of services, and its strong growth in the number of users. The brokerage has set a target price of Rs 2,500, which is 16 percent higher than the Paytm issue price.

Last month, One97 Communications began its journey in the secondary market on a weak note, with shares listing at a discount of around nine percent to their issue price.

Paytm's IPO - which is the biggest public offer of all time in India - though fully subscribed, failed to attract the kind of investor interest enjoyed by most debutants in recent times. The Paytm IPO was subscribed 1.9 times the shares on offer.

Paytm is among the recent new-age businesses to go public in 2021 so far.

Here's how the Paytm share price has moved since the market debut:

One97 Communications - the operator of digital payments platform Paytm - reported a net loss of Rs 473 crore for the second quarter of the current financial year. The quarterly net loss, on account of higher expenses, increased 24 percent sequentially and 8.5 percent annually.

The company's revenue from operations, however, increased 63.6 percent to Rs 1,086.4 crore on a year-on-year basis. Sequentially, the revenue rose 22 percent.

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(Edited by : Sandeep Singh)