India`s Paytm slides for second day after debut debacle
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BENGALURU- Digital payments firm Paytm fell 9.2% on Monday, sliding for a second session after a dismal debut for India's largest public offering last week, in which its shares tumbled more than 27%.
The stock was being traded for 1,417 rupees compared to the offer price of 2,150 rupees.
The company's debut rout on Nov. 18 raised doubts around impending initial public offerings (IPOs) on the red hot Indian market, including those of its smaller rival MobiKwik and hotel aggregator OYO as valuations come under investor scrutiny.
Paytm, which counts SoftBank and Ant Group among its backers, raised $2.5 billion in its IPO, of which $1.1 billion was from institutional investors.
Engineering graduate Vijay Shekhar Sharma founded Paytm in 2010 as a platform for mobile recharges. It grew quickly after ride-hailing firm Uber made Paytm a quick payment option in India.
Its use swelled further in late 2016 when New Delhi's shock ban on high-value currency notes boosted digital payments.
Sharma, who cried with joy at the opening ceremony on Thursday, later told Reuters he was unperturbed by the slide and did not regret listing in India.
Separately, on Sunday, Paytm said gross merchandise value processed via its platform in October was about $11.2 billion, up 131% from a year earlier.
