Paytm crashes more than 27% in market debut: Key things to know

  • After today's crash, the company's market valuation falls to 1,01,484.00 crore on the BSE.
Paytm's <span class='webrupee'>₹</span>18,300 crore IPO was oversubscribed 1.89 times on the last day of India's biggest share sale last week.(REUTERS)
Paytm's 18,300 crore IPO was oversubscribed 1.89 times on the last day of India's biggest share sale last week.(REUTERS)
Published on Nov 18, 2021 05:30 PM IST
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The country's largest digital payments provider, Paytm, lost more than a quarter of the value on its maiden day of trade on Thursday. As the markets closed at around 3:30pm, Shares of One97 Communications Ltd, PayTM's parent company, tumbled 27.25 per cent, marking one of the worst-ever debuts by a major technology company.

Speaking on the crash, CEO Vijay Shekhar Sharma said he was unperturbed by the slide and did not regret listing in India, according to a report by Reuters. "One day does not decide what our future is," the CEO said.

"It is a new business model and it takes a lot for somebody to understand it straightforward... there is a lot for us to bring to the markets and the market participants," it also quoted Sharma as saying.

According to Shifara Samsudeen, a LightStream Research analyst, "Paytm's financials are not very impressive and the growth prospects seem limited... obviously, the company lacks a clear path to profits," Reuters reported.

Here are key things to know about the crash:

>Paytm's 18,300 crore IPO was oversubscribed 1.89 times on the last day of India's biggest share sale last week.

>This was greater than miner Coal India's 15,000 crore offer a decade back.

> The shares tumbled over 27 per cent during the day from the issue price of 2,150. The stock was listed at 1,955, slipping 9 per cent from the issue price on the BSE. It then tumbled 27.25 per cent to 1,564 during the day.

> On the NSE, it debuted at 1,950, registering a decline of 9.30 per cent against the issue price. During the day, the stock plunged 27.34 per cent to 1,562.

> After today's crash, the company's market valuation falls to 1,01,484.00 crore on the BSE.

> Paytm, backed by China's Ant Group and Japan's SoftBank, grew rapidly after Uber listed it as a quick payment option in India.

>The company has now expanded into a plethora of services - insurance and gold sales, movie and flight ticketing, bank deposits and remittances.

(With agency inputs)

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Wednesday, June 29, 2022