Paytm’s decline does not stop! A record decline in the company’s shares, millions of investors swaha!
The company had launched the largest IPO in the country last year. But since the listing, the company’s shares have been falling steadily. The shares never got close to the IPO price. This is the worst performance since Spain’s Bankia SA in 2012, according to Bloomberg data. The Spanish company’s shares fell 82 percent in the first year after the IPO.
52-week low
Paytm raised Rs 18,300 crore through an IPO last year. The shares were priced at Rs 2,150. But since its listing on the stock market on November 18 last year, the shares have been falling steadily. Today it closed at Rs 441.05. This is a 52-week low. The share price has fallen by 30 percent this month. Investors have lost faith in Paytm and feel that the company is unlikely to make a profit. Due to this, the shares of the company are falling.
Strong enthusiasm in the stock market; Sensex hits all-time high, Nifty hits new 52-week high
Decline due to this reason
Last week, Japan’s SoftBank Group Corporation sold shares of Paytm after the lock-in period ended. As a result, the company’s shares fell sharply. Tech share prices around the world have fallen, experts say. Because investors are moving away from loss-making companies. Small investors also participated in Paytm’s IPO, but were disappointed. The company’s shares never rose above its issue price.
Poor investors in a year! Paytm alone sunk so many crores, disappointing IT companies that brought IPOs
Good business model but…
BlackRock Inc and Canada Pension Plan Investment Board also participated in Paytm. Experts say that in 2006-08, investors were bullish on construction companies and capital goods companies. 2013-14 was the era of midcap companies. In 2017-19, investors tended to favor non-banking financial companies. Whereas in 2020-22, people were bullish about tech companies. Some of these companies have good business models. But these businesses are still evolving.
