Paytm shares continue to plunge after listing day fall, down by 34% over IPO issue price
With today's fall, the stock of Paytm has crashed 34.79% compared to its IPO issue price of Rs 2,150. Total 4.55 lakh shares of the firm changed hands amounting to a turnover of Rs 85.17 crore.
FollowPaytm's parent company One97 Communications' shares fell as much as 17.97 per cent in their second day of trading post a weak market debut last week. Shares of the digital payments startup today opened with a downside gap of Rs 51.80 per shares and went on to lose around 17 per cent from its listing date close of Rs 1560.80 per shares on NSE.
Paytm shares slipped 10.35% to Rs 1,402 against previous close of Rs 1,564.15 on BSE. Â Market cap of the firm, which remained above the Rs 1 lakh crore mark on the listing day, fell to Rs 93,490 crore in early trade today. Paytm's IPO was subscribed 1.89 times last week. On the BSE index, the stock touched an intraday low of Rs 1,283.
With today's fall, the stock of Paytm has crashed 34.79% compared to its IPO issue price of Rs 2,150. Total 4.55 lakh shares of the firm changed hands amounting to a turnover of Rs 85.17 crore.
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Analysts have pointed at the firm's expensive valuations as the reason behind the plunge in its stock price. Several market participants saw the stock's performance as a sign that investors had become disillusioned with a recent string of IPOs with inflated valuations.
Paytm’s parent company, One97 Communications Ltd., raised $2.5 billion in its IPO, the most-ever for India, but its disastrous trading debut sparked criticism the company and its investment bankers had pushed too hard in the offering. Founder and Chief Executive Officer Vijay Shekhar Sharma had persistently made clear that he wanted Paytm to surpass the long-standing IPO record set by Coal India Ltd. in 2010. Indian markets were shut Friday for a holiday, Bloomberg reported.
Paytm is the latest among new-age companies to tap Dalal Street for capital. This month shares in PB Fintech - the operator of insurance platform Policybazaar and financial services portal Paisabazaar - began their journey in the secondary market at a premium of 17.4 percent over the issue price, after the company's IPO saw a subscription of 16.6 times.
