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The shares of Paytm plunged down by 26 percent in a week after making their stock market debut on Thursday which is the biggest ever initial public offering. The stock of Paytm opened for Rs 1950 on the NSE and it saw a decline of 9.3 percent or Rs 200 from the issue price which was reported as Rs 2150. After a week, Paytm witnessed a loss of 26 percent from the issue price and ended up at Rs 1586. Paytm's IPO of Rs 18,300 crore is the largest in the country which was subscribed 1.89 times last week. On BSE, the stock of Paytm opened at Rs 1955 for trading.
The company clocked the valuation of Rs 1lakh crore despite the dip in the shares of Paytm. The company's expensive valuation are the reasons behind the fall in the stock price in the first trading session as per the analysts. Some of the analysts revealed that Paytm lacked focus and direction. The IPO of Paytm consisted of a fresh issue of Rs 8300 crores and an offer for sale. More than a hundred institutional investors were allocated by Paytm worth Rs 8235 crores including the government of Singapore. 122 institutional investors have shown interest on Paytm and they bought more than 3.83 crore shares for Rs 2150.
By Siva Kumar