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Paytm Shares Crash 28% On Debut After India's Biggest-Ever IPO: 10 Points
18 Nov 2021, 03:57 PM IST 
Paytm's IPO consisted of fresh issue of Rs 8,300 crore and an OFS worth Rs 10,000 crore.
- Paytm's Rs 18,300 crore IPO, which was the country's largest, was subscribed 1.89 times last week. On the BSE, Paytm stock opened for trading at Rs 1,955.
- Despite the dip in Paytm shares on debut the company clocked the valuation of over Rs 1 lakh crore.
- Analysts pointed at Paytm's expensive valuations as the reason behind the fall in stock price on its first trading session.
- Analysts at Macquarie Research said in a note to clients that Paytm's business model lacked "focus and direction" and initiated coverage with an underperform rating. "Achieving scale with profitability a big challenge," the note said, calling the company a "cash guzzler".
- 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.
- Paytm allocated shares worth Rs 8,235 crore to more than 100 institutional investors, including the government of Singapore, ahead of the country's largest stock market listing.
- Paytm garnered interest from 122 institutional investors who bought more than 3.83 crore shares for Rs 2,150 apiece, according to a regulatory document dated November 3.
- Engineering graduate Vijay Shekhar Sharma founded Paytm in 2010 as a platform for mobile recharges. The company grew quickly after ride-hailing firm Uber listed it as a quick payment option in India and its use swelled further in late 2016 after shock ban on high-value currency notes boosted digital payments.
- Paytm's success has turned Mr Sharma, a school teacher's son, into a billionaire with a net worth of $2.4 billion according to Forbes. Its IPO has also minted hundreds of new millionaires in a country where per capita income is below $2,000.
- Paytm shares ended 27 per cent lower at Rs 1,560.
