After its shares crashed when they listed last week, and that the company has never done anything easier in its history.
The company’s focus on expanding the market and the team’s ability to execute the plan will determine the company’s outcome more than anything else, Sharma said in a four-hour call on Friday, according to People. As a publicly listed firm, Paytm has to respect all its shareholders including retail investors, he said.
Several retail investors who bought shares in One97 Communications, which owns the Paytm platform, are believed to be users of its services.
Shares of Paytm on the BSE closed 27% lower than its IPO price at Rs 1,564.15 on the first day of trading on Thursday, giving the company a
Market capitalization of $13.3 billion, down from its previous private market valuation of $16 billion in 2019. Friday was a holiday in the markets.
Sharma reiterated during the virtually organized townhall that Paytm employees should not be misled by
one day show And that it is time once again to lower your head and build as a listed firm.
He was accompanied by Madhur Deora, Group Chief Financial Officer of the Nodia-based company.
The 43-year-old founder said that one million retail investors investing in Paytm means he has one million more trustees, but it also means he has to live up to the expectations of these investors and keep his faith in the company. Will happen.
Sharma said the company will have its share of ups and downs, but hard work and execution will define its value in the future. He also cited the example of Tesla in the US, which tanked in its stock market debut as well.
A Paytm spokesperson declined to comment.
Sharma’s remarks come amid skepticism from some analysts and investors over Paytm’s ability to establish itself as a leader in multiple businesses, where it is trying to use its existing user base to drive more transactions. Used to be. In addition to enabling payments, it is hoping that it can use its user base of more than 300 million people to sell financial services products and conduct more commerce transactions. A report by global brokerage firm Macquarie, which came out an hour before Paytm’s stock market debut on Thursday, said that “too many pies have too many fingers” and that the company has a clear leadership in any of them. Prevents you from getting the status. Digital Wallet.
Biggest IPO but…
There is growing discussion about whether Paytm went ahead with its initial public issue and if its willingness to launch the country’s biggest IPO at a valuation of $20 billion was adversely affected.
According to multiple sources, including former senior employees of the firm, they are of the view that Paytm did not do enough marketing for its public offering targeted at all types of investors and this affected membership from day one. At the start of the stock’s post-market, there is discussion whether Paytm has priced its IPO 30% higher than market expectations and that investors need to explain its path to profitability and overall business plans in a more nuanced manner. Paytm raised over Rs 8,000 crore from anchor investors, but high-net-worth individuals and several domestic institutions and mutual fund investors stayed away from the issue. Paytm has said that it is happy with the “long-term” anchor investors it met in the IPO.
A former senior Paytm employee, who holds shares in the firm acquired under employee stock option schemes, said, “After all, it was clearly overpriced and with experienced bankers in the team, one would expect them (Paytm) to value it.” could do.” , “The IPO has been in the making for a while and that was always part of the plan. To catch the ongoing IPO wave, they have overestimated the size of the issue and its cost,” said this person.
Sources also said that Paytm is a popular brand in India, but domestic institutional investors and retail investors should be made more aware of its business model and solid future plans ahead. Sharma said in an interview to ET after his debut in the stock market
Paytm’s business model is relatively poorly understood Compared to consumer Internet businesses such as e-commerce or food delivery by some investors.
“These models are easy to understand… If I sell a wallet or a phone, or I can pick up food from a restaurant… you know the business model of how you get (paying) customers? How do you make money and what is cross-selling? These are the questions asked by public market investors,” he told ET last week.
Later on Thursday in a television interview, Sharma said the market was much broader than some of the investors he spoke to in his IPO roadshow.