From Being Biggest IPO To Hitting All-Time Low: Tumultuous Journey Of Paytm Shares So Far

Paytm Share Price: On Tuesday, Paytm Share Price hit an all-time low of Rs 546.65. But this is not the first time it has done so. The price of one Patym share is currently around 1/4th of the IPO price of Rs 2,150.

Written by: Raghav Aggarwal

Updated: March 23, 2022, 11:59 AM IST

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Paytm Share Price: Paytm shares have eroded over 75 per cent of the investors' wealth till now (Photo: AFP)

New Delhi: Paytm Share Price: The shares of One 97 Communications Ltd. (Paytm’s parent company) hit an all-time low of Rs 546.65 on Tuesday. But this is not the first time such a statement has been in news. Since its listing in November last year, the value of Paytm shares has decreased by about 75 per cent. To be more clear, the investors’ wealth has been eroded by around 3/4th. If you had invested Rs 100 in the company in November, you would have been left with just Rs 25 today.

Vijay Shekhar Sharma-led Paytm currently has a market cap of just above Rs 35,000 crore, according to data on BSE’s website. This figure stood at Rs 1.38 lakh crore at the time of the launch of Paytm IPO. In fact, it was the biggest IPO in India. With Rs 1.03 lakh crore wiped off, the listing of the company on the bourses has proven to be a life-changing event for the company.

The company has investments from Jack Ma’s Ant Group, SoftBank, Alibaba Group and Warren Buffett’s Berkshire Hathaway. Vijay Shekhar Sharma holds about 15 per cent of the company, with Ant Group being the biggest stakeholder (29.7 per cent). The company had raised Rs 18,300 crore from its IPO.

Paytm Share: Journey So Far

Paytm Share Price (Photo: bseindia.com)

• The company had fixed the share price of Rs 2,150 per equity share for the IPO.
• On the day of listing, the shares got listed at a discount of 9 per cent at Rs 1,950.
• On the first day itself, the shares closed 27 per cent lower at Rs 1,564.
• Consultancy groups like Macquarie and JP Morgan set lower target prices for Paytm shares, stating that the share was ‘overpriced’.
• The downward trajectory continued and on the ninth day, the share price had already halved to Rs 1,051 per equity share as compared to the IPO price of Rs 2,150.
• Then, the shares started to recover for a while. On November 18, it peaked at Rs 1,961 per share.
• The shares have largely been falling since then.
• It has hit 52-week low several times since November, with the latest being March 22, 2022, at Rs 546.65 per equity share.
• On March 11, 2022, the Reserve Bank of India (RBI) barred the Paytm Payments Bank from onboarding new customers due to supervisory concerns.
• Currently, most of the consultancy groups are of the opinion that the share price may fall further. Macquarie has set a target price of Rs 400 per share. It was Rs 700 earlier.

It remains to be seen if Paytm shares will showcase a turnaround or continue to spill the blood of investors on the D-street.