Paytm’s market capitalisation or its market value dropped by as much as Rs 56,233 crore after its disastrous market debut on Thursday, November 18, data from the BSE showed.
Paytm’s parent company, One 97 Communications Ltd., raised a record IPO sum of Rs 18,300 crore, but its disastrous trading debut sparked criticism the company and its investment bankers had pushed too hard in the offering.
Over the weekend, Paytm released financial details for the month of October, which includes the critical period ahead of the Diwali holiday.
The stumble by the country’s largest digital-payments provider may chill stock-market boom, which had ranked among the world’s most frenzied.
Paytm’s IPO was managed by leading banks, including Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co., ICICI Securities Ltd.
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.