Paytm founder Vijay Shekhar Sharma gets emotional on listing day

Vijay Shekhar Sharma, the founder of Paytm, became emotional during his speech at the Bombay Stock Exchange, or BSE, on the firm’s market debut this morning, after the business completed India’s largest-ever initial public offering or IPO, reported NDTV.

He was seen wiping tears from his eyes with a handkerchief as he addressed a gathering at a BSE hall, according to the media reports.

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Paytm was launched in 2010 by Vijay Shekhar Sharma, an engineering graduate, as a platform for mobile recharges.

Paytm’s popularity skyrocketed after ride-hailing company Uber featured it as a speedy payment option, and it skyrocketed again in November 2016, when the government’s overnight ban on high-value currency notes encouraged digital payments.

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According to Forbes, Paytm’s success has made a schoolteacher’s kid a billionaire with a net worth of $2.4 billion. Its IPO has also resulted in the creation of hundreds of new millionaires in the country.

Paytm received Rs 8,235 crore from 122 anchor investors by allocating 3.83 crore shares at Rs 2,150 each. BlackRock Global Funds received a 12.2% anchor component through World Technology Fund (40.38 lakh shares) and World Financial Fund (6.376 lakh shares). CPPIB has received about 43.62 lakh shares (11.4%).

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Paytm shares plunged 21% on their market debut, valuing the Ant Group-backed digital payments company at approximately Rs 1.11 trillion. In early morning trade, shares were changing hands at 1,705, compared to the offer price of Rs 2,150.

Analysts cited Paytm’s stock price decrease on its first trading day to the company’s exorbitant valuations. 

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Macquarie Research analysts said in a client note that Paytm’s business model lacked “focus and direction,” and they commenced coverage with an underperform rating. “Achieving scale with profitability is a big challenge,” said the note, referring to the corporation as a “cash guzzler.”

At 1:30 p.m. on the BSE, Paytm shares were trading 23.02% lower than the issue price, at Rs 1655.00.