Paytm’s 75% slump is world’s worst for large IPOs in a decade | Business News,The Indian Express

Paytm’s grim first anniversary underscores an erosion of confidence in its ability to become profitable after debuting at a time when India’s IPO market was enamored with tech startups.

The company, whose founder compared its challenges to those faced by Tesla Inc. shortly after the listing, has seen its stock erase 75% of its market value one year after its $2.4 billion offering, the largest on record at the time in India. The dive is the steepest first-year slide globally among IPOs that raised at least the same amount since Spain’s Bankia SA’s 82% drop in 2012, data compiled by Bloomberg show.

Paytm’s grim first anniversary underscores an erosion of confidence in its ability to become profitable after debuting at a time when India’s IPO market was enamored with tech startups. It’s one among a slew of startups that listed with valuations seen by many as exaggerated.

The stock’s losses have deepened this week amid concerns over the emergence of a potential competitor owned by India’s biggest conglomerate. Last week, Japan’s SoftBank Group Corp. sold shares it held in Paytm as a lock-up period set in the IPO expired, fueling a three-day slide.

November’s 30% slide has taken its decline from the IPO price of 2,150 rupees to 79%.

Tech Rout

https://indianexpress.com/article/business/paytm-75-slump-world-worst-ipo-in-a-decade-8287621/


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