New Delhi: Shares of India’s pioneering digital payments startup Paytm plummeted for a second day after its $2.5 billion initial public offering, marking one of the worst debuts ever by a major technology company.
The stock fell more than 10% on Monday after a 27% plunge in its debut Thursday. Shares have dropped more than 30% from the IPO price, hitting individual investors and global institutions such as BlackRock Inc. and the Canada Pension Plan Investment Board that had scooped up shares.
Paytm’s parent company, One 97 Communications Ltd., raised a record IPO sum for India, but its disastrous trading debut sparked criticism the company and its investment bankers had pushed too hard in the offering. Founder and Chief Executive Officer Vijay Shekhar Sharma had persistently made clear that he wanted Paytm to surpass the long-standing IPO record set by Coal India Ltd. in 2010. Indian markets were shut Friday for a holiday.
“Investors should wait a bit for the stock to settle down,” said Mohit Nigam, a fund manager with Hem Securities Ltd. “There is too much volatility and pessimism in the stock.”
