There is a large number of Paytm users in the country, so its IPO was taken up by investors last year. But Paytm has left its investors penniless within a year. Now such records are being added to the name of Paytm, hearing which the panic of the investors is increasing.
The issue of this company has proved to be the worst IPO in the world in the last decade. Actually, Paytm’s stock has lost more than 75 percent from its high. That is, Paytm’s operating company One 97 Communications Limited’s IPO has been the worst performing IPO in the first year of listing. According to statistics, in the last decade, no company’s IPO has seen such a big decline.
IPO was launched in November last year
The IPO of One 97 Communications Limited, the parent company of Paytm, was launched in November last year. Before the launch, there was a tremendous atmosphere regarding this IPO. But within a year, Paytm’s stock has reached the floor from Arsh.
79% of investors’ money drowned
According to Bloomberg data, among all the big IPOs that have come in the last decade, Paytm is the worst performer.
What’s going on? It has so far caused a huge loss of 79% to the investors. Earlier in the year 2012, there was an 82% decline in Bankia SA’s of Spain.
Let us tell you, despite the strong rise in the stock market on Thursday, Paytm’s shares closed at Rs 441, down nearly two and a half percent. Earlier last week, the shares of Paytm had crashed due to the news of selling shares worth about Rs 1750 crore by the Japanese SoftBank Group.
Now those investing in Paytm’s IPO are not able to understand that when will the decline be stopped? Paytm’s stock has lost more than 32 percent in the last one month. While the index Nifty registered a gain of 4.69 per cent during this period. It has fallen 26 percent in 6 months, while Paytm’s stock has fallen by about 75 percent in a year.
Where did the stock price reach from?
Let me tell you, the issue size of Paytm IPO was Rs 18,300 crore and for this the price band was fixed from Rs 2080 to Rs 2150. Investors gave tremendous response to this IPO. But the company has not been able to recover from the fall in the shares since the listing at a discount. Paytm’s stocks were listed on the stock market in November 2021 at Rs 1,950 with a 9 per cent discount.
Paytm started 10 years ago
Paytm started about 10 years ago. Initially the company was known as a mobile recharge platform, but during the demonetisation in 2016, the Paytm Paymate service skyrocketed under the leadership of CEO Viyaj Shekhar Sharma.