Paytm Investors Lost Rs 35,000 Crore On IPO Debut: SEBI Can Launch Investigation
After a disastrous listing that wiped off Rs 38,000 crore in investor capital, Paytm is under the watch of SEBI!
Why Paytm Is Under The Watch Of SEBI?
According to sources quoted by Business Standard, the market regulator aims to probe the investment banks that handled Paytm’s IPO. Paytm’s stock dropped nearly 27% on Day 1, the worst start for an IPO worth more than Rs 1,000 crore.
According to Business Standard, the capital markets regulator would seek investment bankers’ opinions on why the stock fell on the first day of trading. It also intends to look into whether any statements made by corporate officials or lenders may have misled investors.
Paytm Listing Guide For IPO Allottees
Paytm, a fintech behemoth backed by Ant Group, raised Rs 18,300 crore in the primary market, with investors such as BlackRock and the Singapore government taking part.
Paytm has a large customer base with 333 million total customers, 114 million annual transacting users. “Unlike Zomato and Nykaa, PayTM is in a very competitive space which will reduce its ability to grow profitably for quite a long time. The IPO saw a poor response from HNIs and we do not expect any aggressive buying to emerge even at a lower price,”
Abhay Agarwal, Founder and Fund Manager, Piper Serica, SEBI registered PMS.