MUMBAI, Nov 18 (Reuters) – Indian digital payments firm Paytm (PAYT.NS) tumbled 26% on its maiden day of trade, with investors questioning its lack of profits and the lofty valuations it gained in the country’s largest-ever IPO.
While there had been some expectations that Paytm’s market debut could underwhelm, the steep plunge on Thursday was astonishing.
Shares were changing hands at 1,586.35 rupees versus the offer price of 2,150 rupees, valuing the company at around $13.9 billion.
That was not far off 1,560 rupees – the level representing a 20% decline from its open which would trigger the exchange’s circuit breaker and halt trading for the day.
Backed by China’s Ant Group and Japan’s SoftBank (9984.T), the fintech company grew rapidly after Uber (UBER.N) listed it as a quick payment option in India and has expanded into a plethora of services – insurance and gold sales, movie and flight ticketing, bank deposits and remittances.