Mumbai: Many anticipated listings from Paytm, which have been raised by Rs 18,300 Crore at the largest IPO of India, ending with bitter records with shares crashing 27% from the price of the RS 2,150 edition, closed at Rs 1,564.
On the near-day debut, plunge in Paytm shares is the worst for every newly registered company that has an IPO more than RS 1,000 Crore.
The sharp weak closure was also eroded around RS 38,000 crores worth of investor wealth.
From the capitalization of the RS 1.39 Crore Lakh market (around $ 20 billion) at IPO prices, companies, pioneers in the Techenabled payment solution, now worth Rs 1.01 Crore Lakh (around $ 13.6 billion) which made the 52 companies most valued in India.
The list is for one 97 communication that operates paytm.
The closing price is 20% below the price found during the prelisting session for one hour.
Technically, shares are closed on a lower circuit, which also leads to worries between marketmen that may fall further on Monday when trading starts after a weekend extended.
What has been added to fear is a report by the main Australian Macquarie financial services that put the RS 1,200 price target for shares.
Despite the sharp erosion value of his debut session at Dalal Street, Paytm still has more market capitalization of companies such as Hindalco, Coal India and BPCL.
At the close of Thursday, Paytm is worth around RS 6,000 Crore more than Coal India, the largest coal producer in the world that has so far have the biggest IPO of India when in October 2010 lifted around Rs 15,200 Crore.
However, in contrast to Paytm’s sliding stock price listed, on the market debut at the beginning of November 2010, Coal India had rallyed almost 40%.
At present, Paytm is worth under the valuation of $ 16 billion that the company has received in 2019, when lifting $ 1 billion from Softbank, Ant and other investors.
When the offer for the Paytm IPO was closed on November 10, the offer was oversubscribed 1.9 times, especially on the back of the institutional and retail investors.
After setting the price list from RS1.955 during the pre-open session, the stock weakened through the session and closed on the day was low.
Macquarie’s report, titled ‘Too many fingers too many ceases’, noted the company had “organizational complicated structures, related party transactions, churn in top management and thin board staff with 75% of members based in India”.
Analysts in Macquarie believe that for Paytm, getting a small financing bank license can be difficult.
Paytm management said that analysts had never approached the company to understand the business model.