fbpx
  Previous   Next
HomeBusinessPaytm's Market Cap Falls Over Rs 50,000 Crore

Paytm’s Market Cap Falls Over Rs 50,000 Crore

Paytm’s market capitalisation or its market value dropped by as much as ₹ 56,233 crores after its disastrous market debut on Thursday, November 18, data from the BSE showed. Paytm shares have crashed as much as 40 percent from their IPO price to hit a low of ₹ 1,283 in just two trading sessions. Analysts have pointed at high valuations as the reason behind the spiraling downfall in the stock price.

Paytm’s share sale via IPO which ended on November 10 witnessed a tepid response as the issue was slowly subscribed 1.89 times compared with Nykaa’s subscription of 82 times and Zomato’s 38.25 times.

In Monday’s trading session, Paytm shares fell as much as 18 percent on top of a listing day decline of 27 percent.

Paytm’s parent company, One 97 Communications Ltd., raised a record IPO sum of ₹ 18,300 crores, 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 in 2010.

Over the weekend, Paytm released financial details for the month of October, which includes the critical period ahead of the Diwali holiday. Gross merchandise value rose 131 percent to ₹ 83,200 crores for the month, the company said. Loan disbursals, which analysts see as key to Paytm turning profitable, increased more than 400 percent to ₹ 627 crore

They stumble by the country’s largest digital-payments provider may chill the stock-market boom, which had ranked among the world’s most frenzied. The IPO had been touted by some as a symbol of the country’s growing appeal as a destination for global capital, particularly for investors looking for alternatives to China.

Paytm’s IPO was managed by leading banks, including Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co., ICICI Securities Ltd. and Axis Capital Holdings Ltd. They all either declined to comment or didn’t respond to requests for comment.

As of 12:38 pm, Paytm shares traded 17.57 percent lower at ₹ 1,289.35, underperforming the Sensex which was down 1.63 percent.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More News

India Has Two Major Obstacles In Dealing With China: Jaishankar 

Speaking at the media summit, Mr. Jaishankar said asserted that India has two enormous handicaps in dealing with China including the defeat in the...

Assam CM’s Dig At Rahul Gandhi Says Rahul Gandhi Looks Like Saddam Hussain

Assam chief minister Himanta Biswa Sarma in his latest dig at Rahul Gandhi said that the Congress leader's looks have changed and he looks...

Nearly 75% Twitter Employees Layoffs In A Month, Will Elon Musk’s New Policy Be Able To Assure The Employees

After cutting nearly 75% workforce of Twitter in less than a month since the takeover, Elon Musk is now reported to have kept the...

RELATED NEWS

Keep Your Money Safe, Jeff Bezos Warns Economic Recession

Amazon founder Jeff Bezos recently warned consumers and businesses that they should consider postponing large purchases during the holiday season as an economic recession...

G20 Presidency Is A Proud Occasion For Every Indian: PM Modi

Indonesia President Joko Widodo handed over the G20 Presidency to India at the closing ceremony of the 17th intergovernmental summit in Bali on Wednesday....

Unmanned Trains Will Run Soon In India

Bharat Electronics Ltd (BEL) has signed an agreement with Delhi Metro Rail Corporation Ltd (DMRC) to jointly develop an indigenous communication-based train control system...