Paytm: How Vijay Shekhar cried during listing; why shares crashed 20% on debut

Paytm became the largest initial public offering (IPO) launched in the Bombay Stock Exchange. Its parent company One97 Communications launched its IPO with the value of ₹18,300 crores. Soon after launch, Paytm shares traded in the red zone & fell over 20% within minutes of trading. Shares were changing hands at ₹1,645 in morning trade versus the offer price of ₹2,150. Investors, however, questioned the business model of the loss-making digital payments firm. The IPO was launched in a traditional launching event at the Convention Hall of the BSE building. The ritual of gong ringing took place exactly at 10 am, marking the formal launch of the IPO. Event was attended by Paytm founder Vijay Shekhar Sharma, BSE MD & CEO Ashish Chauhan and others. Engineering graduate Vijay Sharma founded Paytm in 2010 as a platform for mobile recharges. The company grew quickly after ride-hailing firm Uber listed it as a quick payment option in India. Paytm's use swelled further in late 2016 when demonetisation boosted digital payments. As per Forbes, Paytm's success turned Sharma into a billionaire with a net worth of $2.4 billion.