Paytm could be termed as one of the most under-performing IPOs as the share breached the Rs 600 mark on Thursday, 72.2% below the issue price of Rs 2150.
Vijay Shekhar Sharma, the founder of Paytm, whose net worth was $2.35 billion before the IPO, is now left at $999 million, according to Forbes. The constant fall in prices of the stock has, by one estimate, wiping Rs 88 crores off of Mr. Sharma’s net worth.
When the IPO was launched, the firm was one of the top 50 companies in India as per market cap. Now, the company is at the 112th position. The company has been facing difficulties constantly as the company was told not to add customers in its Payment Bank and get an IT Audit done recently. This has pushed the price even lower as the stock fell 5.84% on Thursday.
Macquarie Securities which has been the most bearish on the Paytm stock, has a target price of Rs 450. However, Paytm has found an unlikely supporter in the form of BharatPe founder Ashneer Grover who posted a tweet explaining the metrics of the company and asking people to buy it.
Highlight by Aman Agarwal.