fell more than 25% in its first trading day On Thursday, investors questioned its high valuations and lack of profits.
That didn’t mean that Paytm had just launched the worst-ever listing of seven Indian tech startups that went public this year. The nightmare of its opening day also eclipsed the worst trading debut ever by US firms raising at least $2 billion in their IPOs. Paytm had raised around $2.42 billion.
And
informed of Paytm was less likely to hit the market on November 17, given its gray market premium, but the 27.4% drop on the first day surprised even the company’s biggest critics.
The shares traded at Rs 1,614 from an offer price of Rs 2,150 in the afternoon, giving the firm a market cap of around $14.2 billion. This is less than the $16 billion that Paytm raised in 2019 from risk-averse investors. share later
Hits the lower circuit limit of Rs 1,564 On the Bombay Stock Exchange, allows investors to buy only at that price or more.
Seven Indian tech startups that have gone public so far this year. Three of these – CarTrade, Fino Payments Bank and now Paytm – ended their first session below the listing price. While CarTrade’s stock fell 7.29% on the first day, Fino’s stock fell 5.5%. On the other end of the scale, Nykaa
Its first day ended with a rally in its stock An astonishing 96.15%, while Zomato’s
Stock was up more than 65% After the start of its listing.
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ETtechPaytm founder and CEO Vijay Shekhar Sharma, who cried with joy at the opening ceremony, later told Reuters he was unimpressed by the slide and did not regret listing in India.
“One day doesn’t decide what our future holds,” he said. “It’s a new business model and it takes a lot for someone to understand it directly… there is a lot for us to bring to the markets and market participants.”
Paytm embraces America’s biggest flop
Paytm’s 27.4% drop on day one also eclipsed the worst trading debuts by firms that raised $2 billion or more in their IPOs, according to data from Bloomberg.
The worst of these was the launch of trading app Robinhood in July. The company raised $2 billion in its IPO but it’s
Starting $38 . Shares fell 8.4% from Just up from $34 at the end of the first day, giving it a market capitalization of about $29 billion, less than an estimated $35 billion. That means Robinhood’s listing debut was the worst among 51 US firms that raised the same or more amount in their IPOs, according to data from Bloomberg.
Before Robinhood, the worst trading debut by a US company was with another brokerage, MF Global Holdings Ltd, which went public in 2007. It ended its first day down 8.2%.
With input from agencies