Paytm crashes over 27% on market debut
CEO Vijay Shekhar Sharma breaks down during the listing ceremony
New Delhi: Digital payment company Paytm's initial public offering (IPO) made a weak debut at the markets on Thursday as the stock crashed over 27 per cent.
With a valuation of Rs 18,300 crore, the IPO is the biggest so far in India and the fourth biggest globally by any such firm. In fact, the stock hit its lower circuit limit of Rs 1,564 on the BSE during late afternoon deals. When a stock hits its lower circuit limit, purchases by investors are restricted only to that price or higher.
It was listed at Rs 1,955, slipping 9 per cent from the issue price on the BSE. It then tumbled 27.25 per cent to Rs 1,564 during the day.
On the NSE, it debuted at Rs 1,950, registering a decline of 9.30 per cent against the issue price. During the day, the stock plunged 27.34 per cent to end at Rs 1,560.
It was an overwhelming occasion for founder and CEO Vijay Shekhar Sharma who broke down during the opening ceremony. "India is made for stories like that of Paytm. I hope that our story can inspire many budding entrepreneurs," he said.
With an aspiration to bring over half a million people to the mainstream of Indian economy through its fintech platform, Sharma expressed gratitude to all stakeholders of the company who made this journey possible. Unperturbed by the slide, Sharma remained optimistic and said that he did not regret listing in India. "One day does not decide what our future is," he said. "It is new business model and it takes a lot for somebody to understand it straightforward... there is a lot for us to bring to the markets and the market participants," he said.
Paytm had fixed its IPO in a price band of Rs 2,080-2,150 per share.