Paytm parent One97 Communications' shares fell nearly four percent on Wednesday, continuing to decline for the fourth trading session in a row. The latest bout of selling pressure in the Paytm counter comes after some recovery following a weak debut and a series of losses last month.

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Paytm's IPO, 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.

Paytm shares debuted on Dalal Street on November 18, listing at a discount of nine percent to the issue price of Rs 2,150. The weak listing followed an IPO that saw a subscription of 1.9 times the shares on offer.

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

Mayuresh Joshi of William O' Neil has a neutral view on Paytm shares. In an interaction with CNBC-TV18, he suggested a wait-and-watch approach on the stock. "For an IPO, creating a base takes a few weeks and in those few weeks, it is determined how demand and supply dynamics are taken care of. The gross merchandise value has been increasing, but again, it faces stiff competition as well," he said.

Joshi said the IPO base still appears to be incomplete for Paytm. "We would ideally like to watch out over the next few weeks, whether it takes out the IPO price with good demand coming through, and that supply being overshadowed with good demand," he said.

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

Ravi Singh, Vice President and Head of Research at ShareIndia, expects Paytm shares to remain weak for few more trading sessions.

"The fear of the new COVID variant has shaken investors' confidence worldwide. Paytm may touch Rs 1,300 in near term. We advise investors to be cautious and enter only when sentiments turn around," he said.

Last week, One97 Communications -- the operator of digital payments platform Paytm -- reported a net loss of Rs 473 crore for the quarter ended September. The quarterly net loss was up 24 percent sequentially and 8.5 percent annually, as higher expenses dented the company's profitability.

Its revenue from operations, however, increased 63.6 percent to Rs 1,086.4 crore on a year-on-year basis. On a quarter-on-quarter basis, Paytm's revenue was up 22 percent.

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First Published:Dec 1, 2021 2:44 PM IST