New Delhi: The two amazing two-day plunge by Paytm India after the initial public offering gives a shadow over the prospect of a technology company preparing to be published in what should be the year of state breakout.
Retail investors, who bought a number of unprecedented shares in Paytm’s Parent One 97 Communications Ltd., have seen more than 35% of their values ​​abolished in just two trading sessions.
Further losses may be in the store if the stock decreases from the closing price of Monday 1,359.6 rupees to 1,200 rupees predicted by Macquarie Group Ltd..
“The event will encourage people to be careful and not bring the market blindly.
Betting,” said Gopal Agrawal, Director of Executing and Co-Head of Investment Banking at Edelweiss Financial Services Ltd.
“It is important that the company’s stories and prospects are understood Both by investors.
“Indian equity markets have cried this year, supported by the central bank which cut interest rates to a low record and millions of new individual investors who are looking for more risky returns in risk assets.
Rally has encouraged at least half a dozen technology startup to try to a public list, including Softbank Group Corp.
OYO which is supported by OYO and homes and Delhivery Pvt logistics providers.
At least some IPO prospects that have been “on the periphery” and want to benefit from the flood of transactions, can now rethink the time and pricing of their problems, agrawal said.
Mobikwik can postpone his IPO with several months due to a lack of requests from investors and a decrease in 30% -40%, the economic period reported that the sources of lonely on Tuesday did not identify.
Companies in South Asian countries have collected around $ 15 billion through this year’s IPO, it is an annual record with a total of results.
Critics have questioned the assessment of some of these IPHs, considering they are still a lost manufacturing company.
The IPO Boom “This pandemic causes the adoption of large technology in the country that is valued into the assessment of many technology companies,” said Ashutosh Sharma, vice president and research director in Forrester Research Inc.
“Is this the beginning of a downward trend? Don’t know.
But forward, investors will look carefully towards the risks and future of the business of technology companies.” Paytm assessment, around 26 times estimated to be the price-to-sale for the financial year 2023, especially Expensive when profitability is still difficult to understand for a long time, Suresh Ganapathy and Param Subramanian from the Macquarie Capital Securities (India) Pvt.
Write in one of the few research reports that cover the prospect of Paytm.
Most Fintech players globally traded around 0.3-0.5 times the ratio of price growth to sales, they said.
What Bloomberg Intelligence said: “The inflow of domestic funds from $ 1.2 billion in October and recorded – high participation through a systematic investment plan underlined Indian structural trends that turned to equity.
Instead, FII’s sales increased with a total outflow of $ 2.3 Billion in October Food Delivery Application Zomato Ltd.
And Startup Beauty Nykaa – Both are smaller than Paytm offerings – have seen their shares soaring more than 80% since their IPOS.
Agrawal Edelweiss suggested the price stock price to “leave something on the table for investors.” “If a problem can be priced 10% higher or lower, it will be advised to go at a lower price, which offers upside down which is far greater when it comes to trading,” he said.