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Paytm Shares Crash 28% On Debut After India's Biggest-Ever IPO


Trichromatic

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Paytm's shares plunged as much as 26 per cent in a weak stock market debut on Thursday, a week after the country's biggest-ever initial public offering. The stock opened for trading at  1,950 on the NSE, marking a decline of 9.3 per cent or  200 from its issue price of  2,150. Paytm shares extended losses after opening as the stock fell as much as 28 per cent, from issue price, to hit an intraday low of  1,560.

 

 

https://www.ndtv.com/business/paytm-ipo-listing-news-paytm-makes-weak-stock-market-debut-stock-falls-over-9-from-ipo-price-2615354

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9 hours ago, ravishingravi said:

It’s not about the company. More like a correction. But market is bullish overall on Paytm. Whether it has the maturity, is another matter. 

Compared to the other recent IPOs, Paytm was only oversubscribed a little under 2x. Nykaa for instance was over subscribed 10x. And for the retail segment 30x+.

 

Makes one wonder if the market is actually bullish on Paytm...

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49 minutes ago, rkt.india said:

Paytm, a company that is yet to make profits.

The kind of business they are in, it is expected. And it does not mean the company itself is bad(though it is). Such companies target profit in long term. They must be targeting to be profitable in around 2030. The timing of IPO was just about right.

Edited by Chakdephatte
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6 hours ago, Mariyam said:

Compared to the other recent IPOs, Paytm was only oversubscribed a little under 2x. Nykaa for instance was over subscribed 10x. And for the retail segment 30x+.

 

Makes one wonder if the market is actually bullish on Paytm...

 

Its a function of multiple factors Yam. Cant compare different industries. Paytm has to prove its worth. But there is not doubt that they will have the market size. When can they start delivering profits is the question

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On 11/18/2021 at 10:10 PM, velu said:

@Trichromatic  got allocation ? :hmmm: :cantstop:

Response was lukewarm after the issue opened. Domestic institutions didn't show much interest either. That was the big signal to stay out. Luckily, the value of shares allotted on individual application is just 15k approximately. So this ensures that people dont lose too much money. 

 

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On 11/19/2021 at 10:09 AM, Trichromatic said:

 

Same is the case with zomato.

 

 

Zomato IPO size was also big. But they cleverly priced their shares at 76 Rs. Retail investors get tricked into thinking that a 76 Rs share us cheaper than a 2000 Rs share when in reality, the total value of shares they will get allotted us around the same. As of now, Zomato is gaining some buzz because of inclusion in MCSI index and its investments in potential to unicorns of the future. The people running the company seem to be smart and know how to keep up the stock. Maybe Paytm has some tricks to support their share price too, but we have to wait and watch.

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