MUMBAI: The much-anticipated listing of Paytm, which had raised Rs 18,300 crore in India’s biggest IPO, ended on a bitter note with the stock crashing 27% from its issue price of Rs 2,150, closing at Rs 1,564.
At the debut-day close, the plunge in Paytm stock was the worst for any newly listed company that had an IPO of over Rs 1,000 crore.
The sharply lower closing also eroded about Rs 38,000 crore worth of investors’ wealth. From a market capitalization of Rs 1.39 lakh crore (about $20 billion) at the IPO price, the company, a pioneer in tech-enabled payment solutions, is now valued at Rs 1.01 lakh crore (about $13.6 billion) that makes it the 52nd most valued company in India. The listing was for One 97 Communications that operates Paytm.
The closing price was 20% below the price discovered during the hour-long pre-listing session.
Technically, the stock closed at the lower circuit, which is also leading to fears among marketmen that it may fall further on Monday when trading begins after the extended weekend.
What has added to those fears is a report by Australian financial services major Macquarie that put a price target of Rs 1,200 for the stock.
