Lagatar24 Desk
Mumbai, Nov.22: After a dismal market debut on Thursday, November 18, Paytm’s market capitalisation, or market worth, plunged by as much as Rs. 56,233 crore, according to data from the BSE.
In just two trading days, Paytm’s stock has plummeted by 40% from its IPO price to a low of Rs. 1283. High valuations, according to analysts, are to blame for the stock’s precipitous decline.
Paytm’s initial public offering (IPO), which ended on November 10, received a lukewarm reception, with the issue being slowly subscribed 1.89 times, compared to Nykaa’s 82 times and Zomato’s 38.25 times.
Paytm’s stock plunged as much as 18% in Monday’s trading session, following a 27% drop on the day of its initial public offering.
One 97 Communications Ltd., Paytm’s parent company, obtained a record IPO value of Rs 18,300 crore, but the company’s dismal market debut spurred accusations that the company and its investment bankers pushed the sale too aggressively. Vijay Shekhar Sharma, Paytm’s founder and CEO, has made it known that he intended the company to break Coal India’s long-standing IPO record set in 2010.
Paytm revealed financial data for the month of October over the weekend, which includes the crucial week leading up to the Diwali festival. The company said that gross merchandise value increased by 131% to Rs.83,200 crore in the month. Loan disbursements, which analysts believe are critical to Paytm becoming profitable, surged by more than 400% to Rs. 627 crore.
As of 12:38 pm, Paytm shares traded 17.57 per cent lower at Rs. 1,289.35, underperforming the Sensex which was down 1.63 per cent.
