“My heart goes out to individual IPO investors who must be rattled but I’m sure Paytm will find its right level,” Anand Mahindra tweeted.
File image of Mahindra Group chairman Anand Mahindra
Industrialist Anand Mahindra, while commenting on Paytm’s damp debut at the stock market on November 18, said this can end up moderating the “casino-like feeding frenzy” for IPO listings.
The Mahindra Group chairman expressed concern for individual IPO investors, but also sounded optimist as he suggested that Paytm would be able to address the situation.
“My heart goes out to individual IPO investors who must be rattled but I’m sure Paytm will find its right level,” the 66-year-old industry veteran tweeted.
“There is, however, a silver lining to this sobering debut: it could moderate the casino-like feeding frenzy for IPO listings & help restore the hunt for true value,” he added.
My heart goes out to individual IPO investors who must be rattled but I’m sure Paytm will find its right level. There is, however, a silver lining to this sobering debut: it could moderate the casino-like feeding frenzy for IPO listings & help restore the hunt for true value. https://t.co/TDDF4t2TCI
— anand mahindra (@anandmahindra) November 18, 2021
Earlier in the day, the stock of Paytm, formally known as One 97 Communications, crashed 27.25 percent. This was the biggest-ever fall in a decade for any scrip on the listing day. In addition, it was locked in 20 percent lower circuit in comparison to the pre-opening price of Rs 1,955 on the BSE.
The weakness in overall equity market, high valuations, consistent loss in last financial years, expected tough competition in the digital payments segment, and less than expected subscription to its IPO are among key reasons that spoiled the Paytm show today.
Paytm’s Rs 18,300-crore offer was subscribed only 1.89 times against the massive hype created before the issue getting launched. Qualified institutional investors bought shares only 2.79 times the reserved portion and retail investors’ portion was booked 1.66 times, while non-institutional investors did not show high interest in the offer as their portion was subscribed only 24 percent.
