Paytm investors clock returns despite the stock’s lacklustre listing
After raising cash in the country’s largest IPO, One97 Communications, the operator of India’s largest financial platform Paytm, had a poor market debut on Thursday.Half an hour before the closing bell, the stock, which opened at a significant discount of 9%, hit the lower circuit of 20%. The stock concluded the day at Rs 1,564.15 a share, down 27.25 percent from the issue price of Rs 2,150.
The company’s market capitalization concluded at $13.6 billion, down from $16 billion at its most recent private funding in November 2019. SoftBank, Ant Group, Alibaba, and Elevation Capital were among the early investors who profited from the IPO.
After a poor launch on India’s stock exchanges on Thursday, Paytm’s founder Vijay Shekhar Sharma told us that the company’s business model isn’t as straightforward as selling phones or delivering meals. “These are the kinds of queries that public market investors have,” Sharma explained. In the short term, stock markets are like opinion polls, and in the long run, they are like weighing machines, he continued.
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