Paytm seems to be one of the worst investments anyone has made. The IPO was dubbed as one of the worst failures on the market as the share, issued at Rs 2150 at the IPO opened 200 points below at 1950, only to touch an even lower level of Rs 1560 on the first day itself.
monday opened terribly for the stock as it opened below Rs 700, at Rs 675, an all time low for the stock. The most plausible explanation for this seems to be the fact that RBI had recently banned Paytm Payments Bank from bringing in new customers.
The bank, which had been aiming for the license of a small finance bank, has had technical issues consistently and was ordered by the Central Bank to stop bringing in customers and get a thorough IT Systems audit conducted.
As the share stands today, it has already lost 2/3rds of its price. Investors who invested in the IPO are facing a 68% loss currently, one that doesn’t seem to be coming back.
Highlight by Aman Agarwal.