Paytm wipes out Rs 38K crore in investor wealth after stock slips 27% on market debut

The stock of digital payments firm Paytm ended 27% lower to the IPO issue price today, leading to an erosion of investors' wealth worth Rs 38,000 crore. The share fell 27.25% or Rs 585.85 to Rs 1,564 compared to the IPO price of Rs 2,150 on BSE.

The stock ended 19.99% lower compared to the opening price of Rs 1,950. Market cap of the firm slipped to Rs 1.01 lakh crore at the end of today's session.   At the time of listing, Paytm's market cap stood at Rs 1.39 lakh crore.

The stock closed 20% lower compared to the opening price of Rs 1,955. Total 10.06 lakh shares of the firm changed hands amounting to a turnover of Rs 172.46 crore.

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On NSE, the share closed 27.44% lower at Rs 1,560. Market cap of the firm stood at Rs 1.01 lakh crore. The stock ended 20% lower compared to the opening price of Rs 1,950.

Earlier, the stock made its debut at Rs 1,950, a discount of 9.3% to the issue price. Total 2.3 crore shares of the firm changed hands amounting to a turnover of Rs 3738.96 crore on NSE.

The share closed at the lowest point of the session on both bourses.

The IPO was open for subscription from November 8 to November 10. Price band of the share sale was fixed at Rs 2,080-Rs 2,150 per share.

Also read: Paytm could’ve been India’s most valuable startup, but lacklustre stock market debut leads to valuation dip

The share made its debut at Rs 1,955 on BSE. Total 1.59 lakh shares of the firm changed hands amounting to a turnover of Rs 29.35 crore on the BSE. Market cap of the firm rose to Rs 1.19 lakh crore. The IPO of the Noida-based firm was subscribed 1.89 times on final day.

The issue received bids for 9.13 crore equity shares against offer size of 4.83 crore shares. The company collected Rs 18,300 crore through the IPO.

The issue size of the share sale was revised from Rs 16,600 crore. Lot size of the IPO was a minimum of six shares for which one would have to spend Rs 12,900. 

A maximum of 15 lots comprising 90 shares could be applied for by spending Rs 1,93,500. The firm would use the proceeds of share sale to strengthen its payment ecosystem and for new business initiatives and acquisitions. On November 3, the firm raised Rs 8,235 crore (45% of the issue size) from anchor investors.