New Delhi: Shares of Paytm fell as much as 17.97 per cent in their second day of trading. On Thursday, the digital payments start-up made one of the worst major stock market debuts in India, as its shares fell more than 28 per cent after the country’s largest-ever initial public offering (IPO).
Paytm’s IPO was subscribed 1.89 times last week.
On the BSE index, the stock touched an intraday low of Rs 1,283.
Analysts have pointed at the firm’s expensive valuations as the reason behind the plunge in its stock price.
Several market participants saw the stock’s performance as a sign that investors had become disillusioned with a recent string of IPOs with inflated valuations.
Paytm’s IPO consisted of a fresh issue of Rs 8,300 crore and an offer for sale (OFS) by existing shareholders worth Rs 10,000 crore.
It allocated shares worth Rs 8,235 crore to more than 100 institutional investors, including the government of Singapore.
The firm garnered interest from 122 institutional investors who bought more than 3.83 crore shares for Rs 2,150 apiece.
Paytm is backed by Chinese tycoon Jack Ma’s Ant Group, Japan’s SoftBank, and Warren Buffett’s Berkshire Hathaway, which together own around a third of the company.