Paytm IPO: What the crash foretells

India’s biggest first sale of stock (IPO) that raised Rs 18,300 crore from financial backers lost close to a fourth of its valuation on posting day. Fintech application Paytm’s parent organization One 97 Communications Ltd finished its presentation exchanging day at a rebate of 27.24% on the issue cost of Rs 2,150 for every offer — with a shadow over both the company’s IPO valuing and the fantasy run of tech organizations in broad daylight advertises this year. On the NSE, Paytm recorded at Rs 1,950 and shut at Rs 1,560, 27.44% lower than the IPO cost. At the current value, the association’s market capitalisation works out to Rs 1,01,399 cr, as against market assumptions for a Rs-1,40,000-cr valuation. In dollar terms, this works out to almost $13.65 bn — altogether not exactly the $16 bn at which it last fund-raised secretly in November 2019.

Paytm founder and CEO Vijay Shekhar Sharma’s around 14 per cent stake is now valued at Rs 14,000 cr. China’s Alibaba group (6%) and its associate Ant Financial, along with Japan’s SoftBank and Warren Buffett’s Berkshire Hathaway, are major shareholders.

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