Paytm IPO Worst Hit in First Year Itself
New Delhi: The Paytm IPO and shares are falling continuously. Investors are getting panicked each day due to such a huge fall. One 97 Communications Ltd which is the operator of Paytm has capped its IPO as the worst hit in its first year. The founder has scaled the shortcomings of late and compared them to that of big companies like Tesla and said that the loss has erased about 75% of its entire market value which amounts to almost $2.4 billion. It is one of the worst-hit IPOs in the global business market in its first year.
The tech stock has been sold off in the global market for such a fall in stock prices. Sachin Dixit of JM Financial Ltd. analysts said, “This feedback has been well received by company management and we are seeing all Indian internet companies not just prioritizing profitability but also communicating the path forward explicitly.”
Another tech stalwart, Shridatta Bhandwaldar, the head of equities at Canara Robeco Asset Management also hinted about the falling business models. In his statement, he said, “In every rally, the market as a whole gets too excited about something. In 2006-2008, we got too excited about construction companies and capital goods companies. In 2013-2014, we got too excited about midcaps. In 2017-2019 we got extremely excited about non-banking financial companies and in 2020-2022 people were just too excited about technology. Some of these companies have good business models, still, you feel there is not enough margin of safety because these are evolving businesses.”
The share values of Paytm have seen a steep loss this week. A potential competition by one of India’s biggest conglomerates seems to have incurred losses for Paytm stocks. Investors have seen a massive loss through such a steep stock market fall and reportedly they have lost a whopping 4000 crores within a few days.