Paytm founder and CEO Vijay Shekhar Sharma aimed to make his company’s debut in the stock market surpass the long-standing 2010 IPO record of Coal India Ltd. Unfortunately, on November 18 Sharma’s ambition backfired as the day turned into one of the worst opening days for a blockbuster tech listing, ever since the dot-com bubble. The 27% plunge in Paytm stocks on the day of its market debut surprised many, casting doubt on a record-breaking run for Indian equities. Sharma was bombarded with questions as people wanted to know that what went wrong with the $2.5 billion fundraising. Business tycoon Anand Mahindra offered some comforting words, to individual IPO investors who have been rattled, in his latest tweet. Mahindra mentioned that he is sure Paytm will find its right level.
My heart goes out to individual IPO investors who must be rattled but I’m sure Paytm will find its right level. There is, however, a silver lining to this sobering debut: it could moderate the casino-like feeding frenzy for IPO listings & help restore the hunt for true value. https://t.co/TDDF4t2TCI— anand mahindra (@anandmahindra) November 18, 2021
Further in the tweet, the businessman highlighted a silver lining to the sobering market debut of Paytm. Mahindra opined that the debut could “moderate the casino-like feeding frenzy for IPO listings and help restore the hunt for true value.”
However, netizens feel that there were enough red flags and retail investors should have done their research before betting on an IPO. One of the users said, “The Paytm IPO should be a case study for retail investors and future businesses.” Another stated that even SEBI also requires introspection.
A retail investor should research before betting on an IPO. There were enough red flags. The Paytm IPO should be a case study for retail investors in the future. And also future businesses.— Noyon Jyoti Parasara | নয়ন জ্যোতি পৰাশৰ (@NoyonSENSE) November 18, 2021
Agree 👍But whether SEBI also need introspectionHow valuation changes multifold within a span of few months, how the assumptions are scientific while calculation of the return and all— Pratik Patawari 🇮🇳 (@IndiaShiningPJ) November 18, 2021
M & M after2018 peak we are same lvl. Pandamic crushed the value. pic.twitter.com/9f8ffVIYYi— Life is beautiful. (@sinaharpi) November 18, 2021
Govt earning lakhs of crores as revenue from stock market dealings. Zero accountability? A 10 yr old fintech company owner @vijayshekhar managed sanction for 18300 cr India's biggest IPO. India's biggest bank share price is 500 but he convinced SEBI that his price is 2150.— saroj indian 🇮🇳 (@Saroj_ini) November 18, 2021
Paytm looks like a perfect example of stunning overreach. The company which garnered support from leading banks like Morgan Stanley and Goldman Sachs Group Inc., had pushed the price as well as the size of the stock offering to the breaking point. The retail investors, along with global giants like the Canada Pension Plan Investment Board and BlackRock Inc, who piled into the offering are now sitting on heavy losses.
Read all the Latest News, Breaking News and Coronavirus News here. Follow us on Facebook, Twitter and Telegram.