Paytm is an Indian multinational technology company based in Noida, Uttar Pradesh, specializing in digital payment systems, e-commerce and finance. Paytm is currently available in 11 Indian languages and offers online use cases such as mobile phone charges, utility bill payments, travel, movies, event bookings, grocery stores, and in-store payments at fruit and vegetable stores. Paytm QR codes are offered at restaurants, parking lots, tolls, pharmacies and educational institutions. As of 2020, Paytm is valued at $ 16 billion.The shares of One97 Communications operated Paytm, which went public on Dalal Street, got off to a terrible start as prices continued to fall all day long. Stocks fell 26.2 %, hitting a low of Rs 1,586 in bad market conditions, from the upper limit of the issue price of Rs 2,150 As a result, India’s largest initial public offering (IPO) lost nearly a quarter of its valuation on its public debut day, worse than expected. Paytm went public earlier this month, worth Rs 18,300, after receiving a green signal from Sebi.Paytm’s share price fell nearly 27% after falling about 27% after listing on 18th November, Thursday. Shares of digital payment start-ups opened with a drop gap of 51.80 per share, down about 17% from the closing price of 1560.80 per share at NSE. Paytm’s share price at NSE on 22nd November was 1286.60 (12:31 AP), which is about 40% below the maximum price range of 2150 per share. 18th November, Thursday’s IPO is the latest in a series of IPOs by Indian start-ups, with many companies beginning to explore the open market after years of growth. Indian grocery start-up Zomato, online insurance aggregator Policybazaar, and fashion retailer Nykaa have made their remarkable debut in the public market this year.Early hour trading of Paytm shares has been disappointing so far compared to competitors. However, many industry executives have stated that stock price performance from day one is not the best measure of Paytm’s success in offering a variety of services such as peer-to-peer payments and digital banking. After making a weak debut on the Indian Stock Exchange on Thursday, Paytm released its financial details for October. This includes important periods leading up to the Diwali holidays. According to the company, total commodity value this month was up 131% to Rs 83.2 billion ($ 11.2 billion). Loan payments, which analysts consider Paytm to be the key to profitability, increased by more than 400% to Rs. 6.27 billion.After this publication; K R Choksey Investment Managers Pvt strategist Deven Choksey said “87% of the problems are always subscribed to by institutional investors who can support prices, so stock prices will not fall significantly.
He stated.Paytm CEO Vijay Shekhar Sharma is unaffected by this ongoing plunge in corporate stocks. This slump “does not show the value of our company.” In an interview with Bloomberg News on Thursday, the 43-year-old said so. “Bow down and run. “Ten years ago, Vijay Shekhar Sharma flew to Hong Kong to attend the All Things D conference. At the event, he saw Silicon Valley executives Jack Dorsey and Brian Chesky talk about the company they are building. But the historic conversation for his company, One97 Communications, was an interview with Alibaba founder Jack Ma. For the first decade of its existence, One97 Communications has provided carriers with a variety of services such as domain name registration and VAS. The company had raised $ 15 million and was profitable, but Sharma was convinced that he now needed to switch to payments, he recalled in an interview. But it was a tough sale for Sharma, as many investors wanted him to stay focused on their existing business, according to some people familiar with the matter. After going back and forth with investors several times and betting on some of its stocks, Sharma got a green light for his ambitious experiments.
Paytm’s journey has never been easier, even after the green light. Over the years, start-ups struggled to raise money and received multiple buyout offers from things like Freecharge and Snapdeal-all were turned down, according to sources familiar with the matter. Paytm today competes with many companies such as Google, PhonePe, Facebook, and almost all of them have been in the spotlight in recent years. According to Credit Suisse, at stake is the fast-growing payments market, which could be worth $ 1 trillion in years, from $ 200 billion in 2019.According to experts, Paytm’s high reputation, restrained investor reaction, and deficit business, despite the company’s high market share, acted as a catalyst for its decline. The stock debut price was lower than expected. Paytm shares opened at Rs 1,955 Rs 4,444, down 9.1% from the high-end issue price of Rs 2,150 on the Bombay Stock Exchange. According to analysts quoted by MoneyControl, only active investors are advised to invest money in the company. Paytm’s weak listing took place as investors’ reaction to the IPO subsided. According to the stock exchange, Paytm IPO was subscribed at 1.89 on the last day of the offer. Paytm’s parent company, One97 Communications, received 9.14 billion shares for the sale of 4.83 billion shares. Qualified institutional investors signed 2.79 times the portion reserved for them, and private buyers bid 1.66 times the portion reserved for them. Non-institutional buyers have booked 24% of their stake.According to experts quoted by MoneyControl, the slow response was primarily due to Paytm being a deficit company. “The company has a huge customer base with strong brand positioning and an early advantage in digital payment services, but it’s still a losing business and very aggressive pricing. The response to the subscription was mild, “said Santosh Meena, Research Director at Swastika Investmart. Some experts have hinted that Paytm will not become a profitable company in the near future. According to Tradingo founder Parth Nyati, only active investors are allowed to hold shares in the company. “New investors are encouraged to look for competitors that may outperform Paytm. The company is aiming for a high reputation due to its strong brand and expects a fix in the near future.” He told.