Investors had to face heavy losses on One 97 Communications’s (parent company of Paytm) highly celebrated stock market debut.
Investors were left mouth wide open, after the very awaited stock market debut of One 97 Communications, brought them huge losses. The dive of the stocks managed to kill ₹38,000 crores of the Paytm’s IPO value, leaving enormous losses for the investors. The company was initially placed on the top tier in terms of IPO price with a value of ₹1.39 lakh crore.
The disappointing fall of Paytm’s stocks left a weird silence on the otherwise noisy IPO market. The selloff of Paytm’s stocks is a sign of people becoming more aware about where and when to invest in the IPO market.
The stock was supposed to be issues at a price of ₹2,150 but was launched at ₹1,950 with a 9% discount. Soon it started constantly going down to an extent of 27%. This left the investors more cautious and shocked. The lowest point in the day was when the stock fell down to ₹1,564.15, and was then finally brought to a close. This is considerably the worst listing day performance of a company with the IPO of over ₹1,000 crores.
On the company’s defence, CEO of Paytm Vijay Shekhar said, one day cannot decide the future. He says it’s a new business model and it will take time for people to understand it. He tried to convince the investors to not be bothered with the loss as it is too short term and asked them to wait for the quarterly numbers.