×
Top
Bottom
Tech Souls, Connected.

+1 202 555 0180

Have a question, comment, or concern? Our dedicated team of experts is ready to hear and assist you. Reach us through our social media, phone, or live chat.

Paytm Shares Hit A Record Low As The Price Drops By 65%

One97 Communications, parent company of Paytm, has been in a free fall since its listing on the Indian exchanges on Nov 18, 2021.

On November 8, 2018, Paytm’s market capitalization was a little over Rs 1.39 lakh crore at the issue price of Rs 2,150. But by Tuesday, March 8, this value had eroded to Rs 47,844 crore.

As a result, in just about 3 months or more, Paytm’s market capitalization has fallen below Rs 50,000, a steep decline of 65.6%.

Paytm’s Market Valuation Falls Under Rs 50,000 Crore

The escalating Russia-Ukraine crisis has affected the global economy in every way, especially with the wild swings in oil prices, which have broken records and touched multi-year highs.

As much as it is crippling global economies, such geopolitical tensions are impacting the Indian economy on a serious note too.

Due to massive selling caused by the uncertainty and inflation worries created by the Russia-Ukraine crisis, the domestic market has been experiencing a continuous decline since the past 4 days.

As a result, Paytm shares have been further devalued, as it had been performing poorly even before the war.

On Tuesday, the fintech company’s shares ended over 2% higher, with a market cap of Rs 47,844 crore, just under Rs 50,000 crore.

Paytm’s Valuation Eroding Continues

Paytm was listed on November 18 but was offered at a discount of 9.3% against its issue price of Rs 2,150, at Rs 1,950 per share, and ended the day 27.4% lower.

Paytm is is the country’s biggest IPO so far, while the fourth biggest IPO globally, with a valuation of Rs 18,300 crore.

On the second day of its listing, the stock plunged even further, declining 10% more, and its market capitalization fell by Rs 50,000 crore. This marks about a 37% decline since the stock was listed.

The stock’s IPO turned out to be overvalued, so investors took profits. The stock free fall continues despite a 50% drop from its issue price of Rs 2,150.

Due to the overvaluation of Paytm’s stock, renowned foreign brokerage Macquarie expressed hawkish views on the listing.

Share this article
Shareable URL
Prev Post

Gotham Knights Playtest Went Live On Steam, Then Quickly Removed

Next Post

Microsoft Will Create India’s Biggest Data Center Region In This City

Read next