Paytm revealed the results of its second quarter last month, saying that its net loss increased by 8.4% to Rs. 474, up from Rs. 437 a year ago.

After a lock-in period for anchor investors in the business’s initial public offering (IPO) concluded on Wednesday, shares of digital payments company Paytm fell as much as 13%. After a disastrous IPO launch, last month Paytm has hit a new low.

Paytm falls 13% after a poor IPO launch as the lock-in period for investors expires.
Paytm falls 13% after a poor IPO launch as the lock-in period for investors expires.

On Wednesday morning, Paytm stock was trading at $1,269, compared to the offer price of $2,150. Paytm’s stock recovered some of its losses as the day progressed, closing at 1,392.25.

Paytm shares have lost 13 of the 18 sessions since they were listed on the stock market on November 22. The stock has dropped 27% on its first day of trading on November 22. Paytm raised $2.5 billion in its IPO, with $1.1 billion coming from institutional investors. It is supported by SoftBank and Ant Group, among others. Paytm’s net loss increased by 8.4% to $474 million in the second quarter following the IPO, according to the company’s figures released after the IPO.

Paytm’s management claimed in a statement that “we have maintained our growth momentum in our payments services business, aggressively grown our financial services business, and are on our way to pre-Covid volumes for Commerce and Cloud services.” With a cash equivalent and investable balance of 110 billion dollars, the corporation declared it was “fully capitalised,” including through an initial public offering (IPO).

Vijay Shekhar Sharma, the founder of Paytm, who wept with excitement at the opening ceremony last month, later told Reuters that he was unconcerned about the decline and did not regret listing in India.

Paytm was created in 2010 by Sharma as a platform for cell phone recharges, and it grew swiftly after the ride-hailing business Uber made it a speedy payment option in India. Its popularity grew even more in late 2016, when New Delhi imposed a surprise ban on high-value currency notes, boosting digital payments.