What The Paytm Crash Foretells
India Today|December 06, 2021
It had been billed as India’s biggest IPO (initial public offering), but when digital payments firm Paytm’s Rs 18,300 crore share offer closed on November 10, the results were notably underwhelming.
M.G. Arun
Though the IPO was oversubscribed, demand for Paytm’s shares was only 1.9 times the supply—in contrast, other recent IPOs, such as of fashion retailer Nykaa (oversubscribed 82 times), food delivery aggregator Zomato (38 times) and insurance products aggregator Policybazaar (17 times) saw much greater investor interest.

Worse was in store for the Vijay Shekhar Sharma-promoted firm when Paytm shares were listed on the exchanges. On November 18, the share price of One97 Communications (Paytm’s parent company) sank 27 per cent. The stock had been listed at Rs 1,950—a discount of 9.3 per cent on its offer price of Rs 2,150—and closed at Rs 1,564, leading to a reported loss for investors of about Rs 5,000 crore. The shares continued their fall on Monday, November 22, plunging to Rs 1,360.30. The company’s market cap dropped to Rs 88,184.67 crore, as against market expectations of around Rs 1.4 lakh crore at the time of listing. Though the share price rose 9 per cent in intra-day trading on November 23 to reach Rs 1,480, market watchers weren’t confident that this marked a turnaround.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM INDIA TODAYView All

The Omicron Explosion - How Dangerous Is It?

Don’t be fooled by Omicron’s milder manifestation. Covid’s new strain is spreading like wildfire and can be ignored only at our own peril

10+ mins read
India Today
January 24, 2022

CONFIDENCE BOOSTER

The launch of the booster shot campaign and new vaccines give hope that the impact of Omicron and the third wave will be less severe than the previous surge

8 mins read
India Today
January 24, 2022

GOA GETS A PARTY OF PARTIES

The TMC’s entry is the big news in the Goa election. Elsewhere, the mix ’n match of state politics continues even as the BJP tries to stave off anti-incumbency

5 mins read
India Today
January 24, 2022

AN UNEASY TRUCE

On December 15, 2021, a long-drawn-out legal battlebetween members of the erstwhile Jaipur royalty came to a close.

4 mins read
India Today
January 24, 2022

DELIGHTING IN THE DETAIL

Her attention to craft has helped actor SHEFALI SHAH become the cynosure of modern entertainment

4 mins read
India Today
January 24, 2022

WANTED: A HEALING TOUCH

After two Covid-battered years and in the midst of assembly elections, the government is likely to attempt a feelgood budget for 2022-23

5 mins read
India Today
January 24, 2022

Q + A “AGE HAS LIBERATED ME”

Actor Lara Dutta Bhupathi is enjoying her day in the ott sun. The comedy Kaun Banegi Shikharwati on Zee5 is already the former Ms Universe’s third web show in two years

1 min read
India Today
January 24, 2022

A CAMPAIGN WITH BYTE

Leaders savvy and unsavvy, freelance techie gunslingers who do saffron in the morning and socialism by night, the smell of virtual cordite…. India is seeing its first online-only elections. What do the Digital War Rooms of parties look like?

10+ mins read
India Today
January 24, 2022

THE POISONED WELL

Ask around in the Digambar Chowk area of Jorhat in Assam about engineering student Niraj Bishnoi and you run up against a strange kind of absence. Many in the neighbourhood did not even know he existed.

8 mins read
India Today
January 24, 2022

JAT PLUS: A CHALLENGE IN THE WEST

After a decade in the wilderness, the Rashtriya Lok Dal and its new chief, Jayant Chaudhary, are back in the reckoning in bastion western UP

4 mins read
India Today
January 24, 2022
RELATED STORIES

Pivot: Scott Galloway

Super-Apps Are Inevitable Get ready for the first $10 trillion tech company.

6 mins read
New York magazine
November 22 - December 5, 2021

India's Fintech Boom

A government-backed system of digital payments has set offa wave of innovation

3 mins read
Bloomberg Businessweek
November 08, 2021

Paytm's Sharma Is Ready To Take On The World

Vijay Shekhar Sharma, 41, founded closely held One97 Communications and its brand Paytm (rhymes with ATM) almost two decades ago.

10+ mins read
Bloomberg Markets
October - November 2019

‘Paytm Q4 payments revenue expected to be at $140 m'

Founder and CEO Vijay Shekhar Sharma said the company is building credit as the next line of business and it has crossed the number of loans issued by one of the leading NBFCs

1 min read
Financial Express Mumbai
January 13, 2022

Paytm shares down 46% from IPO price as concerns persist

SHARES OF ONE97 Communications, the parent company of Paytm, hit yet another low of 1,151.00 on the BSE on Monday, after foreign brokerage firm Macquarie maintained its 'underperform' rating on the stock. Over the last one month, the stock has lost 26.1% and over the last five trading sessions, it has fallen 13.6% while the Sensex gained 2%. Analysts have flagged off several concerns ranging from lower earnings estimates, rich valuations to senior management departures.

1 min read
Financial Express Mumbai
January 11, 2022

Paytm-Insuretech deal rejected by regulator

Paytm's links with Chinese investors might have halted approval by Irdai

3 mins read
Business Standard
January 03, 2022

पेटीएम इंश्योरटेक का सौदा नामंजूर

पेटीएम इंश्योरटेक द्वारा सामान्य बीमा कंपनी रहेजाक्यूबीई की प्रस्तावित खरीद को भारतीय बीमा नियामक विकास प्राधिकरण (आईआरडीएआई) से अनुमति नहीं मिली है। इस सौदे को फिर से निदेशक मंडल के पास भेज दिया गया है।

1 min read
Business Standard - Hindi
January 03, 2022

2021 sets a unicorn record, but with delay factored in

2021 was 60 months. It was as much as 79 months in 2019 before the pandemic. The exceptions this year include companies like blue-collar job portal Apna, which got there in 12 months, and cryptocurrency platform CoinSwitch Kuber, which managed it in eight months. Both these start-ups are based out of Bengaluru.

2 mins read
Business Standard
January 01, 2022

SoftBank Group says India's digital demand strong, will keep investing

SOFTBANK GROUP CORP will continue to invest in India's digital companies, undeterred by the recent plunge in Paytm, the online fintech giant it has backed.

1 min read
Financial Express Mumbai
December 18, 2021

पेटीएम का ऋण वितरण रहा दमदार

तीसरी तिमाही के पहले दो महीनों में ऋण वितरण 375 फीसदी बढ़कर 1,320 करोड़ रु.हुआ, फिनटेक कंपनी का कहना है कि त्योहारी मांग से उसके प्लेटफॉर्म पर जीएमवी 129 फीसदी बढ़ा

1 min read
Business Standard - Hindi
December 14, 2021