Paytm raised Rs 18,300 crore, or about $ 2.4 billion, through an IPO last year. Its issue price was Rs 2,150. But since its listing on the stock market on November 18 last year, it has been in a steady decline. Today it closed at Rs 441.05, its lowest level in 52 weeks. Its price has dropped by 30 per cent this month. Investors have lost faith in Paytm and they feel that the company is unlikely to make profits. This is the reason why the shares of the company are falling.
why the decline
Last week, Japan’s SoftBank Group Corp. sold Paytm shares after the lock-in period was over. Due to this the company’s shares fell heavily. Experts say that the price of tech stocks has declined worldwide. This is because investors have started shying away from loss-making companies. Small investors also participated in Paytm’s IPO, but they were disappointed. The stock of the company could never rise above its issue price.
BlackRock Inc. in Paytm. And the Canada Pension Plan Investment Board also participated. Experts say that during 2006-08, investors were bullish on construction companies and capital goods companies. 2013-14 was the time of midcap companies. In 2017-19, investors were inclined towards non-banking financial companies while in 2020-22 people were enthusiastic about technology. Some of these companies have good business models. But these businesses are still evolving, so there is not much margin for safety.