Indian Digital Pioneering Payment Shares began paytm plummeted for the second day after the initial public offering of $ 2.5 billion, marked one of the worst debuts ever by the main technology company.
Stock fell by around 13% on Monday after a 27% plunges in his debut Thursday, cutting its market value to around $ 12 billion.
The decline has been regarding individual investors and global institutions such as BlackRock Inc.
And the Canadian Pension Board Investment Council that has earned shares.
Also read the founder of Alsopaytm compared him to Musk after the historical IPO Flop Founder and Chief Executive Officer of Falls after the initial public offering.
Vijay Sharmapaytm Parent Company, One 97 Communications Ltd., Collecting a record number of IPOs, but the debut of trading on the disaster triggered the criticism of the company and the investment bank has pushed too hard in the offer.
The founder and Chief Executive Officer Vijay Shekhar Sharma constantly explained that he wanted Paytm to go beyond the IPO record that had long been set by Coal India Ltd.
In 2010.
The Indian market was closed on holidays.
“Investors must wait a little for stock to settle,” said Mohit Nigam, a fund manager with Hem Securities Ltd.
“There are too many volatility and pessimism in stock.” During the weekend, Paytm released financial details for October, which included a critical period ahead of Diwali’s vacation.
Gross merchandise value rose 131% to Rs 832 ($ 11.2 billion) for that month, the company said.
Loan distribution, which analyst is seen as the key to paytm which changes profitable, increasing more than 400% to Rs 6.27 billion.
Stumble by the largest digital payment provider in India can calm the Indian stock market boom, which is ranked among most of the hustle and bustle of the world.
The IPO has been mentioned by several as a symbol of the country’s banding as a goal for global capital, especially for investors who are looking for alternatives to China.
Paytm IPO is managed by leading banks, including Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co., ICICI Securities Ltd.
and Axis Capital Holdings Ltd.
They all refused to comment or not respond to a comment request.
Critics have questioned Paytm’s prospects in recent months.
While sales on core payments and financial-financial arms rose 11% in March, overall income fell 10% in the midst of intensifying competition, the company reported in July.
Even before trading began, Macquarie Capital Securities (India) Pvt.
Ltd.
Slap the company with the initial “poor performance” rating and the target price of 1,200, 44% lower than the IPO price.
“Considering the Paytm Cash Burning Business model, there is no clear path for profitability, the risk of large regulations on business and corporate governance is questioned, we believe the company is considered too high at the top of the ribbon price of Rs 2,150,” Suresh Analyst Ganapathy and Paramsesh Subramanian write in a note.
Others see the promise in the paytm model if it is built on a growing customer base.
“Paytm is a strong company technology, but they need to expand to the Finance side of Fintech’s business,” said Deven Choksey, a strategist at the Crchoksey Pvt investment manager.
“Only focusing on technology will not work.” Sharma CEO has defended the company’s prospects.
He strengthened employees during the four-hour town hall and encouraged them to see past the first day decline, according to participating employees.
Sharma begged Elon Musk and Tesla Inc., reminded employees that the stock maker of electric vehicles was the most abbreviated in the world.
But the company overcomes many years of struggle to become one of the best known brands globally, he said.
The decline is “There is no indicator of the value of our company,” said 43-year-old people in an interview with Bloomberg News on Thursday.
“We are in it for the long term.
We will lower our heads and execute.”