New Delhi: Paytm Digital Payment Platform made a history by launching the largest IPO (IPO) in India worth RS 18,300 Crore.
After many anticipation, the company’s shares made a market debut on Thursday with a 9 percent discount.
However, the stock continued to hit and reached a lower circuit limit of RS 1,564 towards the end of the trade.
Following his debut, the Paytm market capitalization fell from an IPO assessment of $ 20 billion to around $ 13.6 billion at the close of trade.
Read Alsopaytm Crash more than 27% on his girl’s day market debut on the stock exchange, Paytm shares dropped more than 27.26 percent to close at Rs 1,564 with Rs 2,150 offer prices.
Actually, stocks reach a lower circuit limit of 1,564 rs.
in BSE during an afternoon offer.
When a stock reaches a lower circuit limit, purchases by InvestorsEven even though Paytm hopes to penetrate even at the end of next year or early 2023, the company said in its prospect that it expects losses for the future that can be estimated.
However, investors and analysts seem to be lacking faith when they question lack of profit and sublime judgment.
The weak response is being seen as a sign that investors become disappointed with a series of IPOS recently with increasing assessment.
According to the Macquarie research report, the PayTM business model has no focus and direction.
The research company believes that the achievement of scales with profitability will be a big challenge for the company.
As a result, it has maintained a price target of Rs 1,200 for shares to oppose the price of the problem of Rs 2,150, implying more than 40 percent of the risk of decline.
‘Competition can reduce the economic unit’ the next report notes that Paytm competitors such as Amazon, Flipkart, Google and others offer almost the same service.
So, this competition is quite clear in certain categories such as financial products or buy now pay later (BNPL).
This can be clearly implied of the fact that even though the offer of $ 2.5 billion Paytm is valued at the peak of the indicative range, demand is far weaker than the sale of shares recently, because Paytm has lost some market share to Phonepe Google and Flipkart.
It also hopes that the company’s free cash flow position (FCF) will not change positively until the financial year is 2030.! Function () {“use tight”; window.addeventListener (“message”, (function (e) {if)! == e.data [“datawrapper-height”]) {var t = document.queryelectorall (“iframe”); for (var a in e.data [“datawrapper-height”]) for (var r = 0; r