Paytm’s shares have crashed 25% after its historic IPO.
The three-day initial public offering (IPO) of Paytm's parent One97 Communications was launched on November 1 that concluded on November 3 with a price range of ₹2,080-2,150 per share. The IPO was subscribed 1.89 times with institutional buyers including FIIs flooding the share sale with offers seeking 2.79 times the number of shares reserved for them.
Paytm’s Rs. 18,000 crore IPO, which was the largest ever in the history of India’s stock markets, opened today at 10 am. The stock started trading at Rs. 1950, 10% below its IPO price of Rs. 2150. As trading continued, Paytm’s stock fell to Rs. 1608 by 10:45 am. This is a steep 25% blow to its IPO price.
As of writing, (11:36 Nepal Time), the shares are trading at ₹ 1,666.
Investing in Paytm’s initial public offering (IPO) could prove to be a “very high-risk bet” and might not see a sizable jump when it lists on stock exchanges, a fund manager had said on Tuesday.
India, the world’s second-most populous nation has seen a spurt of technology unicorns listing recently, with the stock markets rallying to record highs. The initial share sales of food tech firm Zomato and cosmetics retailer Nykaa were fully subscribed on the first day, signaling immense retail investor interest in the space.