Paytm opened today almost 3% higher at Rs.639.90 and rose further to Rs.655.30, up more than 5%. Its somewhere in the mid-point between its 52-week high and low at Rs.844.40 and Rs.439.60 respectively. It has come off the highs and is now trading at Rs631 levels. Currently, sellers outnumber buyers on the counter.
The stock price first surged on news from Bloomberg that Bharti Enterprises founder Sunil Mittal was looking at buying stake in the company in order to get synergistic advantages of Airtel Payments Bank and Paytm. It was rumoured that he was seeking a stocks deal and was also looking at buying shares from other holders to get a majority stake with management control.
An hour ago, news has come in that the deal will not go through as the Paytm promoters are not willing to relinquish management control. And they also did not see an advantages of strategic alliances as both their business models are different.
Currently, the company seems to be engulfed in the midst of rumour mongers with their own set of agendas; its best to be a mute spectator.