CAIRO: Shares in India’s largest digital payments provider, Paytm, fell more than 10 percent on Monday as it continues a disappointing market launch, reported Bloomberg.
The company’s stock plunged 27 percent last Thursday in Mumbai, marking one of the worst-ever debuts by a major technology company.
Paytm’s parent company, One 97 Communications, raised $2.5 billion in its initial public offering, the most-ever in India, but its disastrous trading launch sparked criticism that the firm and its investment bankers had pushed for too high a launch price, with Paytm valued at 43 times its 2021 sales.
The firm floated with a 2,150 rupee ($28.60) issue price last week, valuing the 11-year old fintech at $20bn.
Gross merchandise value rose 131 percent to 832 billion rupees ($11.2 billion) for the month, the company said.
Loan disbursals, which analysts see as key to Paytm turning profitable, increased more than 400 percent.
However, investors have raised concerns about the amount of cash the firm burns, as well as the strong competition it faces from rivals such as Google Pay.
Paytm’s initial public offering was managed by a range of institutions, including Morgan Stanley, Goldman Sachs, JPMorgan Chase, ICICI Securities and Axis Capital Holdings.
