Paytm shares continue to decline, market cap plunges below Rs 1 lakh crore

Paytm shares continue to decline, market cap plunges below Rs 1 lakh crore. On NSE, the shares tumbled 16.16% to Rs 1,308.60. The company's market.
Paytm shares continue to decline

On NSE, the shares tumbled 16.16% to Rs 1,308.60.

The company's market cap has dropped below the Rs 1 lakh-crore mark to Rs 84,807.16 crore.

The payments giant said its gross merchandise value jumped 131% to $11.2 billion last month from a year earlier.

as 6.77% to close at Rs 119.20 in the afternoon trade on BSE. The stock had gained nearly 24% in its ₹19 IPO, the biggest debut for an Indian startup in recent times.

Shares of Paytm slumped as much as 6.77 % to settle at Rs 119.20 on the last day of its IPO (initial public offering), the stock’s first trade on the stock exchanges. The stock jumped nearly 24% on its debut, its biggest-ever debuting, for an Indian unicorn.


Including the fresh share issue after the IPO, the total proceeds from the IPO have climbed to about Rs 4,096 crore, from the initial target of Rs 3,728 crore, pushing up the portion of the company going public.

Paytm Retail Pvt Ltd., the retail arm of Paytm that has reached about 29% stake in the company, could have sold its stake in the IPO for Rs 620 crore while that of its promoters could have raised proceeds of Rs 390 crore after the fundraising.


In its IPO, a bulk of the funds will go to the company's parent, worth at least $5.3 billion.

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"As opposed to the earlier 2-1 ratio, in the IPO Paytm carries the entire subscription for the retail investors," said Nimish Sharma, senior analyst at smallcapinsights.com. "After listing, investors will hold shares of both the parent company and the retail shareholder."

Analysts said that this will help the company earn a better return on its investments.

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"Although listings normally fetch a better return for the Indian stakeholders the biggest positive part of our IPO is the marketing budget, which is a great indicator of how business is going to be progressing ahead. The long run-after-IPO returns are going to be more promising," said Sriram Sundar, Chief Financial Officer, Paytm.

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