Paytm, the digital payments start-up made one of the worst major Indian stock market debuts on Thursday as its shares fell more than 27 percent after India’s largest-ever IPO.
Paytm’s debut rout raised questions about the impending initial public offerings (IPOs) on the red-hot market of Indian, including those of its smaller rival such as MobiKwik and OYO, the hotel aggregator, as valuations come under investor scrutiny.
Several investors questioned Paytm’s lack of profits and its high enterprise value of about 27 times the gross profit. The magnitude of price drop of the company astounded many, wiping $5 billion off its IPO valuation.
As the price fell, it finally came to a halt when Paytm’s stock reached near-circuit-breaking levels on Indian exchanges.
Paytm, the digital payments start-up made one of the worst major Indian stock market debuts on Thursday as its shares fell more than 27 percent after India’s largest-ever IPO.
Paytm’s debut rout raised questions about the impending initial public offerings (IPOs) on the red-hot market of Indian, including those of its smaller rival such as MobiKwik and OYO, the hotel aggregator, as valuations come under investor scrutiny.
Several investors questioned Paytm’s lack of profits and its high enterprise value of about 27 times the gross profit. The magnitude of price drop of the company astounded many, wiping $5 billion off its IPO valuation.
As the price fell, it finally came to a halt when Paytm’s stock reached near-circuit-breaking levels on Indian exchanges.
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