Paytm Shares Crash 26% On Debut After India's Biggest-Ever IPO

Thursday, 18 November 2021Newsdesk

Paytm's shares plunged as much as 26 per cent in a weak stock market debut on Thursday, a week after the country's biggest-ever initial public offering. The stock opened for trading at ₹ 1,950 on the NSE, marking a decline of 9.3 per cent or ₹ 200 from its issue price of ₹ 2,150. Paytm shares extended losses after opening as the stock fell as much as 26 per cent, from issue price, to hit an intraday low of ₹ 1,586.

New Delhi, 18 November 2021

As per news report of NDTV, Paytm's ₹ 18,300 crore IPO, which was the country's largest, was subscribed 1.89 times last week. On the BSE, Paytm stock opened for trading at ₹ 1,955. Despite the dip in Paytm shares on debut the company clocked the valuation of over ₹ 1 lakh crore. Analysts pointed at Paytm's expensive valuations as the reason behind the fall in stock price on its first trading session. Analysts at Macquarie Research said in a note to clients that Paytm's business model lacked "focus and direction" and initiated coverage with an underperform rating. "Achieving scale with profitability a big challenge," the note said, calling the company a "cash guzzler".Paytm's IPO consisted of a fresh issue of ₹ 8,300 crore and an offer for sale (OFS) by existing shareholders worth ₹ 10,000 crore.

Source - NDTV