Paytm's 75% Slump Is World's Worst for Large IPOs in a Decade: Report The dive is the steepest first-year slide globally among IPOs that raised at least the same amount since Spain's Bankia SA's 82 per cent drop in 2012, data compiled by Bloomberg showed
By Soumya Duggal •
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Paytm-parent company One 97 Communications Ltd. has capped the worst first-year share plunge among large IPOs over the past decade, according to recent report by media company Bloomberg.
The company, whose founder compared its challenges to those faced by Tesla Inc. shortly after the listing, has seen its stock erase 75 per cent of its market value one year after its $2.4 billion offering, the largest on record at the time in India, stated the report. The dive is the steepest first-year slide globally among IPOs that raised at least the same amount since Spain's Bankia SA's 82 per cent drop in 2012, data compiled by Bloomberg showed.
One 97 Communications Ltd. is the operator of India's largest digital-payments provider known as Paytm, whose ability to become profitable is doubtful in the minds of investors, especially at a time when many tech startups are undergoing valuation corrections.
Last week, Japanese conglomerate SoftBank Group sold its stake in Paytm as a lock-up period set in the IPO expired, inducing a three-day slide. November's 30 per cent slide has taken its decline from the IPO price of 2,150 rupees to 79 per cent, noted Bloomberg.
