Paytm’s Vijay Shekhar Sharma In Tears On Listing Day
After completing India’s largest-ever initial public offering, or IPO, Paytm founder Vijay Shekhar Sharma became emotional during his statement at the Bombay Stock Exchange, or BSE, on the company’s market debut this morning.
Mr Sharma was spotted wiping tears from his eyes with a handkerchief as he spoke to a crowd in a BSE hall.
Paytm was launched in 2010 by Mr Sharma, an engineering graduate, as a platform for mobile recharges.Paytm developed swiftly after Uber included it as a speedy payment option, and its popularity soared in November 2016, when the government announced an overnight ban on high-value currency notes, boosting digital payments.According to Forbes, Paytm’s success has made Mr Sharma, a schoolteacher’s son, a billionaire with a net worth of $2.4 billion. Hundreds of new millionaires have been created in the country as a result of the IPO.
Paytm reported negative cash flows from operations in FY19, FY20, and FY21, owing mostly to operating losses and increased working capital requirements. In FY21, the company lost Rs 1,701 crore, 2,942.40 crore in FY20, and Rs 4,230.90 crore in FY19. IndusInd Bank and Bank of Baroda, on the other hand, reported gains during these years.
Santosh Meena, Head of Research, Swastika Investmart said, “It is difficult to value such kind companies for time being but by the time market will understand the way to value such kinds of businesses where the market will focus on how fast it will become profitable and how well it will use its strength to explore new businesses like credit card and payment banking. I would suggest only aggressive investors hold this stock for the long term amid uncertainty where I believe Bajaj Finserv is a much better option to play on fintech businesses.”
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