Worst performance of biggest IPO: Paytm stock closed down 27% compared to issue price, Rs 586 per share.
The amount of loss that the company of Paytm has incurred over the period of IPO is been devastation on the point where it is been in its kindly gestures and has been 27 % down. The investors who invested in IPO has suffer losses of Rs. 586. The worst performance companies which has biggest issue has been in the market.
Market cap Rs 1.01 lakh crore
One 97 market capitalisation stood out to be at Rs 1. lakh crore. AT The time of listing it went upto 1.27 lakhs but eventually lead to a great fall. When it was listed at such less price leading eventually to decrease in its Market Capitalisation of Rs. 26000.00 Crores, When we compare it with Nykaa it is very much nearby to it market capitalisation.
Share was listed down 9%
On Thursday the Stock listed at the National Stock Exchange at Rs 1,950 and on the Bombay Stock Exchange at Rs 1,955. the IPO listed price was low by 9% than the price of Rs 2150. Since , we show sharo sell of in market.
May drop by 44%
Brokerage house Macquarie had already predicted that the Paytm’s stock may decline by 44% from here. This share can go up to Rs 1,200 as predicted but facing the reality. This means that investors may get out of such unbearable losses in this in future also.
Biggest IPO ever
Paytm’s initial public offer (IPO) of Rs 18,300 crore is the biggest IPO in the country so far. Existion share holder sold Rs10,000 crores worth Rs shares and 8,300 Crores Fresh Issue was made.
IPO was subscribed 1.89 times
Paytm’s IPO was subscribed 1.89 times. The company had received application for 9.14 crore shares for its 4.83 crore shares. QIB Has greatly support the Paytm IPO but could not sustain it Properly. QIB’s quota in the IPO was subscribed 2.79 times. The ipo was subscribe by retail Investor at 1.66 Times and only 24 % by non institutional buyers.
Where will the company use this money?
According to the Companies Officials the amount raised was been used according to the strengths and expansion plans Rs 4300 Crores was been used for expansion in Financial Services and Rs 2000.00 Crores for the new business Initiative and partnership for strategies
The rest of the remaining amount will be used for other corporate purposes.
The shares of Paytm witnessed a reverse opening on Thursday, November 18 at Dalal Street. Today i.e. on November 18 2021, Paytm IPO got listed in the both stock market at 9.15 am. The issue price of the share was Rs 1950 which was way to less than the share price been shown at 2150 per share causing a loss sentiment in the market, causing losses to investors.
On 18 th November we all had eyes upon the institute with largest market capitalization but fail its journey . One97 Communications, the parent company of digital payments platform Paytm, made its first public offering a few days back.
Listed at 9.07 percent discount
Shares of giant fintech Paytm got listed with a fall today.the share price the IPO was been extremely low than its Issue price of Rs 2150 however, we can see that its listing price was Rs.1950 thus, reducing it’s market capitalisation by 36000 crores were its Projected market Capitalisation was 1,26,000 Crores. Its IPO was the biggest ever IPO country witnessed in the country, but investor response was not upto the mark and it was fully subscribed on the last day itself. So far, its stock has downfall for more than 15 percent, due to which investors have got a big setback.
Shares fell after listing
The listing of its shares in stock exchange under the IPO of One97, a Paytm that runs digital payments company , has been extremely disappointing and dishearten for investors. By 10.52 am, the stock of Paytm had reached Rs 1616.50, falling 15 per cent on the BSE. The decline continued till the end and on the first day its price fell by 27%.
Experts had expressed their opinion earlier
Already due to gray market premium less listing the paytm market share was considered as weak in terms of listing and was related to it thus, market analyst already predicted that share price might fall or share would make a very little gains, weak market sentiment in the last few trading days. Experts had predicted that this would be right to book profits at the time of listing and invest again in shares when there is a correction.
Anand Mahindra also commented
Commenting on the shares, well-known industrialist Anand Mahindra tweeted, “My heart goes out to the investors who put their money in Paytm. I am sure Paytm shares will come back soon by huge turnaround . Slow start to share listings It’s like a silver lining.
On the day of weekly expiry, there was a heavy fall in the market. Although at this point,the market slightly got upwards from the negative level in the trading day, both Sensex-Nifty closed in the negative mark at the end of trading. At the end of trading session, the Sensex, the main index of the Bombay Stock Exchange (BSE), lost almost 372.32 points, or 0.62 percent, to close at 59,636.01. On the other hand, the Nifty of the National Stock Exchange (NSE) fell 133.85 points, or 0.75 percent, to close at 17,764.80.
Earlier on Wednesday, the stock market closed on the with a fall. The Sensex close at 60,008.33 at end of day, below 314.04 points, or 0.52%. At the same time, Nifty index closed at 17,898.65, negative 100.55 points or 0.56 per cent.
The company’s market valuation stood at Rs 1,01,399.28 crore.
The company’s market valuation on BSE stood at Rs 1,01,399.28 crore. The company’s market cap decreased by Rs 37,600.28 crore due to the fall in share price.
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