Massive erosion of Rs 61,000 crore in two days in Paytm's stock

(Commercial Representative) MUMBAI: Investors in shares of Paytm-One3 Communications Ltd, an Indian financial technology giant and mobile payments company, are doomed. Investing in the company's stock has proved to be a huge loss-making business. In just two days, investors' capital has eroded by as much as 9 per cent at one stage and finally eroded more than Rs 21,000 crore.

It may be mentioned here that after the extraordinary erosion of investors' capital in Paytm's shares, the company was seen in an attempt to stop the erosion in the stocks by announcing its business results for the month of October 2021 only yesterday.

But investors and players did not like this. With this, in just two days, the market capitalization, that is, the assets of investors, has come down by Rs 21,000 crore to the bottom of Rs 215 crore. The IPO of the company had a market capitalization of Rs 1,3,50 crore at a price of Rs 4,150 per share.

Paytm do ... Paytm do ... The situation is getting worse for retail investors who apply for and acquire shares in the company's IPO than to pay twelve thousand, on the other hand banks' finance, IPO funding are high profile people with a habit of paying high interest. Even for high net worth investors, the situation is such that even if you cut, you will not get out.

As a result, stocks of this high-net-worth investor class have been floating in the market for the last two days. With the advent of Paytm, this leveraged class of stocks, banks and financiers are starting to take off in the stock market.

With the historic boom in the secondary market, even in the primary market, the big players have been actively flooding the issues, charging incredibly high premiums in the gray market and enticing new investors to invest in the issues. As a result, millions of people have come forward to invest in the primary market.

But to show that the IPOs have been a record-breaking and extraordinary response, high net worth investors have sought to raise Rs 100-100 crore from banks-financiers at a higher interest rate of 15 to 18 per cent against their own capacity of Rs 100 crore to Rs 100 crore in the primary market. Is.

As a result of which IPOs are getting huge response and huge benefits of listing, stocks are finally being offered to retail investors in the secondary market at high prices. It is said that those who have staked billions of rupees on the issue of Paytm by taking the finances of these high net worth investors-banks have been lured into the trap this time by listing the stocks at a discount and huge losses have been incurred.

After the first report by foreign broking giant Macquarie that the actual valuation of Paytm's stock was sitting at Rs. With retail investors also losing ground in the battle of the big eye, the market was disappointed that it was not safe to put money in Paytm as the capital was eroded by 3% in two days due to the recession.