Paytm on Thursday listed at a steep discount to its IPO price, as investors questioned the company’s valuation and path to profitability.
Stock hits 20% low circuit half an hour before bell close, its issue price slipped 27.25% to Rs 1,564.15 from Rs 2,150. The market capitalization was Rs 1.01 lakh crore (about $13.5 billion), much lower than its IPO valuation of Rs 1.50 lakh crore ($20 billion).
This is less than the valuation that the Vijay Shekhar Sharma-led startup achieved in its last fundraising round in November 2019.
Paytm was valued at $16 billion
When it raised $1 billion in funding round Led by US asset manager T Rowe Price, with participation from existing investors Ant Financial and SoftBank Vision Fund, according to a report by ET on November 25, 2019. This was the largest amount raised by an Indian startup that year.
“This is a $1 billion increase led by T. Rowe Price,” Sharma said then. “SoftBank has invested $200 million while Ant Financial has invested $400 million at a valuation of $16 billion.”
two years, company
Funds raised in India’s biggest IPO, seeking a valuation of $20 billion. Proposal
got full membership On the last day of the share sale, that too after being pushed by qualified institutional buyers.
NS Paytm IPO Some touted this as a symbol of the country’s growing appeal as a destination for global capital, particularly for technology investors looking for an alternative to China. The question now looming over the $3.5 trillion stock market is whether IPO funding and the optimism that has driven the Sensex to record highs has gone too far.