India Paytm slips for second day after first debacle, Telecom News, ET Telecom

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BENGALURU: Digital payments firm Paytm fell 9.2% on Monday, sliding for a second session after a dismal start for India’s biggest public offering last week, in which its shares fell more than 27%.

The share was trading for Rs 1,417 against the offer price of Rs 2,150.

The company’s first rout on Nov. 18 raised doubts about impending Initial Public Offerings (IPOs) in the scorching Indian market, including those from small rival MobiKwik and hotel aggregator OYO, as valuations are under the investor control.

Paytm, which counts SoftBank and Ant Group among its backers, raised $ 2.5 billion during its IPO, including $ 1.1 billion from institutional investors.

Engineering graduate Vijay Shekhar Sharma founded Paytm in 2010 as a mobile top-up platform. It grew quickly after ride-sharing company Uber made Paytm a fast payment option in India.

Its use increased further at the end of 2016, when New Delhi’s shock ban on high-value banknotes boosted digital payments.

Sharma, who cried with joy during the opening ceremony on Thursday, later told Reuters he was not disturbed by the slip and did not regret registering in India.

Separately, on Sunday, Paytm said the gross value of goods processed through its platform in October was around $ 11.2 billion, up 131% from the previous year.

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