#paytm ipo crash

[techmarkethunter]

Paytm's 20% Crash: Impact on Fund Houses & Insurance Companies

Paytm’s 20% Crash: Impact on Fund Houses & Insurance Companies The recent 20% plunge in Paytm’s stock price has sent shockwaves through the financial sector, particularly impacting fund houses and insurance companies that hold significant investments in the digital payments giant. Here’s a breakdown of the situation: Impact on Fund Houses: Estimated loss of Rs. 585 crore: Based on publicly…

[squarwell-breakingnews]

Paytm's Vijay Sharma Says Disastrous IPO Was "A Sort Of Graduation"

Paytm’s Vijay Sharma Says Disastrous IPO Was “A Sort Of Graduation”

Vijay Sharma founded Paytm parent One97 Communications over two decades ago. Paytm was the poster boy for India’s tech startups, only to lose two-thirds of its value since its IPO and become a symbol of the industry’s crash. Now its founder promises a sharpened focus on financial performance to convince investors of the money-losing company’s prospects. The digital-payments provider is set to…

[znewstech]

Paytm's Vijay Shekhar Sharma Says Disastrous IPO Was A Sort Of Graduation

Paytm’s Vijay Shekhar Sharma Says Disastrous IPO Was A Sort Of Graduation

Vijay Sharma founded Paytm parent One97 Communications over two decades ago. Paytm was the poster boy for India’s tech startups, only to lose two-thirds of its value since its IPO and become a symbol of the industry’s crash. Now its founder promises a sharpened focus on financial performance to convince investors of the money-losing company’s prospects. The digital-payments provider is set to…

[currentmediasstuff]

Fundamentals remain robust: Paytm tells BSE after shares plunge

The shares of Paytm have witnessed a steep fall this month, declining nearly 32 per cent to Rs 543.90 apiece on the BSE as of Tuesday.

One 97 Communications, the parent company of payments platform Paytm, on Wednesday, said their business fundamentals remain robust and there is no information/announcement which may have a bearing on the price/volume behaviour of the stock which is yet to be disclosed to the bourses.

The shares of Paytm have witnessed a steep fall this month, declining nearly 32 per cent to Rs 543.90 apiece on the BSE as of Tuesday.

It further declared that the company has made all necessary disclosures to the stock exchanges within the stipulated timeline.

In a filing to the BSE, the company said, “We would like to reiterate that the company is committed to comply with the Listing Regulations and any information/ announcement, likely to have bearing on the price/ volume of the shares of the Company would be disclosed, from time to time, to the Stock Exchanges within stipulated timeline.”

Paytm’s announcement was in response to a query by the BSE. Asia’s oldest stock exchange on Tuesday had sought clarification from One 97 Communications with reference to the significant movement in the stock price, in order to ensure that investors have the latest relevant information and to safeguard the interest of the investors. Paytm shares fall 75% since IPO launch

Ever since it made a weak debut in the stock market in November last year, Paytm shares have witnessed a significant fall, declining nearly 75 per cent from its offer price to an all-time low of Rs 541 apiece on the BSE as of Tuesday.

Earlier this month, the Reserve Bank of India (RBI) directed Paytm Payments Bank to stop onboarding new customers with immediate effect and conduct a comprehensive audit of its IT system, citing “material supervisory concerns”. Since the announcement of this measure by the central bank, the stock as crashed over 30 per cent.

What should investors do?

Commenting on the recent developments surrounding Paytm, Ravi Singh, vice president and head of research at Share India Securities said, “RBI’s recent ban on Paytm on adding new customers due to likely gaps in its technology systems hurts the business sentiments severely. The stock has reflected the immediate negative effect and a massive sell off triggered with a frail probability of rebound. However, Paytm has already onboarded a very large customer base onto the payments bank but the ban will affect their chances of upgrading to a small finance bank.”

He noted that due to the negative developments, Paytm stock is in continous downtrend and may touch the levels of Rs 500-450 in the near term. He said that investors must avoid this stock till the sentiments stabilises.

[techminsolutions]

50% of November IPOs fall below their issue prices amid market crash

50% of November IPOs fall below their issue prices amid market crash

A sharp correction in equity markets have dragged half or four out of seven newly listed companies, that made stock market debut in November, below their respective issue prices. One97 Communications, the parent company of digital payments major Paytm, fintech company Fino Payments Bank, auto ancillary firm SJS Enterprises, quick service restaurant (QSR) Sapphire Foods are now trading below…

[new-haryanvi-ragni]

Paytm crashes on Day 2 too, down 37% since IPO

[thenewsfactsnow]

Nifty, Sensex in Bear Grip as Equity Benchmarks Crumble

Nifty, Sensex in Bear Grip as Equity Benchmark Crumble #Nifty #Sensex #StockMarketNews #StockMarketsToday #Businessnews #InvestorNews #Investment

Nifty recorded a deep dive southward as it tumbled several points on Monday. Indian equity benchmarks showed continued decline for fourth straight session on Monday with Nifty and Sensex crashing the most since April 12, at the day’s lowest levels, as investor sentiment was shattered after weak listing of the country’s biggest-ever Paytm’s IPO. Equity benchmarks at Nifty and Sensex continued to…

[salam2050]

Paytm's Market Cap Drops Over 50,000 Crore After Disastrous Market Debut

Paytm’s Market Cap Drops Over 50,000 Crore After Disastrous Market Debut

Paytm’s share sale via IPO which ended on November 10 witnessed a tepid response. Paytm’s market capitalisation or its market value dropped by as much as Rs 56,233 crore after its disastrous market debut on Thursday, November 18, data from the BSE showed. Paytm shares have crashed as much as 40 per cent from its IPO price to hit low of Rs 1,283 in just two trading sessions. Analysts have pointed…

[goldwingsartsinstitute]

Paytm's Market Cap Drops Over 50,000 Crore After Disastrous Market Debut

Paytm’s Market Cap Drops Over 50,000 Crore After Disastrous Market Debut

Paytm’s share sale via IPO which ended on November 10 witnessed a tepid response. Paytm’s market capitalisation or its market value dropped by as much as Rs 56,233 crore after its disastrous market debut on Thursday, November 18, data from the BSE showed. Paytm shares have crashed as much as 40 per cent from its IPO price to hit low of Rs 1,283 in just two trading sessions. Analysts have pointed…

[squarwell-breakingnews]

Paytm's Vijay Sharma Says Disastrous IPO Was "A Sort Of Graduation"

Paytm’s Vijay Sharma Says Disastrous IPO Was “A Sort Of Graduation”

Vijay Sharma founded Paytm parent One97 Communications over two decades ago. Paytm was the poster boy for India’s tech startups, only to lose two-thirds of its value since its IPO and become a symbol of the industry’s crash. Now its founder promises a sharpened focus on financial performance to convince investors of the money-losing company’s prospects. The digital-payments provider is set to…

[b2bordermanagement]

Stock Request Timetable Is Stock Market Open Moment? See BSE, NSE, MCX Trading Hours

indian Stock Markets — The NSE (National Stock Exchange) and the BSE ( formerly Bombay Stock Exchange) will close its operations on Friday, November 19. Trading processes will be halted on the day on the account of Guru Nanak Jayanti. On this note, one should keep in mind that this is the last day this time that stock requests will close for a vacation, piecemeal from the weekends. The parts that will remain close on Friday at the BSE are the equity member, equity secondary member and Securities Lending and Borrowing (SLB), according to the timetable. This comes further than a month after the Dusshera vacation, which was on October 15.

Commodity requests will be closed for morning session on October 15. The regular trading will take place in the evening session, according to schedule. For dealers in goods, Multi Commodity Exchange (MCX) will will be closed for the first between 9 am and 5 pm on Friday. It'll open during the alternate half of the session 5 pm to11.30 pm. the Public Commodity & Derivations Exchange Limited (NCDEX) will be shut during the morning session between 9 am and 5 pm and will renew operations from 5 pm till 9 pm.

The stock request will also remain shut on November 20 and 21, that's on Saturday and Sunday, for the regular weekend out. This means that the equity bourses will renew for trading only on Monday, after three days.

Sensex collapsed 372 points on Thursday, tracking losses in indicator majors L&T, Infosys and TCS amid a negative trend in global requests. The 30- share indicator ended372.32 points or0.62 per cent lower at, as per a PTI report. Also, the NSE Nifty fell133.85 points or0.75 per cent to. M&M was the top clunker in the Sensex pack, slipping over 3 per cent, followed by Tech Mahindra, L&T, HCL Tech, Tata Steel and IndusInd Bank. On the other hand, SBI, PowerGrid, HDFC Bank, Reliance Diligence and HUL were among the winners.

During the vacation- abbreviated week, Sensex drooped points or1.73 per cent, while Nifty tanked337.95 points or1.86 per cent. All sectoral indicators ended in the red on Thursday, with BSE essence, bus, capital goods, introductory accoutrements and artificial indicators falling as much as2.76 per cent. Broader BSE midcap and smallcap indicators lost up to1.68 per cent. Away in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended with losses.

  There were three stock request leaves in November on the the account of Diwali, according to BSE Timetable. The BSE, NSE remained unrestricted on Diwali Laxmi Pujan, November 4 (Thursday) and Diwali Balipratipada, November 5 (Friday) before November 19, that's moment.

In 2021, there were 14 stock request leaves. The requests were closed for three days in April, loftiest in any month — Good Friday on April 2, Baba Saheb Ambedkar Jayanti on April 14 and Ram Navami on April 21.

In the environment of a weak global request, compression extended in essence and crude canvas prices, importing down the Indian request. In the broader request, One97 Dispatches Ltd, Paytm’s parent company, crashed around 27 per cent in its request debut on Thursday. Paytm’s Rs-crore IPO, the country’s largest original share trade, was subscribed1.89 times last week.

[shlipayadavblog]

Book a loss and exit Paytm stock now, advise analysts

Paytm, the biggest initial public offer (IPO) in India so far debuted 9 per cent lower on Thursday at Rs 1,950 on the BSE and slipped 20 per cent to Rs 1700 levels as the trade progressed. The company's Rs 18,300-crore offering, the biggest-ever in the domestic capital markets, had barely managed to sail through.

On an overall basis, the issue was subscribed 1.89 times, with the institutional portion getting a subscription of 2.79 times and the retail investor portion 1.66 times. Given the offer's aggressive pricing and the fact that One97 Communications, the parent company ...

Even though Vijay Shekhar Sharma-owned Paytm is India’s biggest digital payments platform, the feat wasn’t enough to please Street investors. Shares of One97 Communications, parent firm of Paytm, listed at a nine per cent discount on the bourses on Thursday, debuting at Rs 1,955 per share. Soon after, the shares crashed 27 per cent against the issue price of Rs 2,150 and hit an intra-day low of Rs 1,564 apiece. It must be remembered that the company’s Rs 18,300-crore offering, the biggest-ever in the domestic capital markets, had managed to sail through only on the last day of the offer. On an overall basis,

the issue was subscribed 1.89 times, with the institutional portion getting a subscription of 2.79 times and the retail investor portion 1.66 times. So, are these low levels a good entry point for new investors? Or is there more downside to this fall? AK Prabhakar, who is head of research at IDBI Capital, says that given Paytm’s weak financials, investors should track quarterly results over the next 1-2 years before taking any position.

[askgopal]

Some quick thoughts...

Paytm's disastrous listing and its subsequent crash in the market is a good lesson for the promoters and investors alike. What was touted to be the largest IPO in the Indian market history has left the investors, bitter and sour after the listing. The mad rush for the IPOs has created a smoke screen in the general public, who are getting on to the irrational exuberance. Paytm fiasco should send strong signals to both the promoters and the investors at once. 

Promoters should refrain from getting greedy about the exorbitant valuations by offloading them on the gullible investors who are swayed by the bull markets. Promoters in the overall interest of the businesses tapping stock markets should be realistic and not turn greedy by killing the golden goose. Investors have a big lesson on Paytm - don't get swayed and tempted by IPO mania. IPO mania comes back in cycles and whenever the markets get too pricey promoters rush in to offload their stakes at premium valuations. 

It is the investors who must do proper due diligence before investing in such IPOs mindlessly. In particular, investors need to be cautious about the new age tech companies which have the least potential of making profits in a consistent manner. In fact, companies like Paytm have forecast losses in the foreseeable future. 

IPOs provide an exit route for the early stage investors in these startups by making a huge killing on their small investment years back. IPOs of these new age tech companies may not be beneficial for the normal investors. Investors should go back to their drawing rooms and figure out the company's potential before investing rather than get carried away by the euphoria in the stock markets. 

[salam2050]

Warren Buffett-backed Paytm crashes 27% after milestone IPO for India

Warren Buffett-backed Paytm crashes 27% after milestone IPO for India

It’s turning into a monumental year for India’s stock market, as yet another big startup makes its public debut. Source link

[goldwingsartsinstitute]

Paytm Share Price On Stock Market Debut: Paytm Crashes In Market Debut: Here's What Analysts Said

Paytm Share Price On Stock Market Debut: Paytm Crashes In Market Debut: Here’s What Analysts Said

Paytm is backed by Jack Ma’s Ant Group, Japan’s SoftBank, and Warren Buffett’s Berkshire Hathaway Digital payments firm Paytm crashed as much as 26 per cent in a weak stock market debut on Thursday, a week after the country’s biggest-ever initial public offering (IPO). Paytm’s IPO was subscribed 1.89 times last week. The stock opened for trading at Rs 1,950 on the NSE from its issue price of Rs…

[muzaffar1969]

http://ift.tt/2t4SaIf

We will be discussing how the Wealth Management business can profit from Fintech by gaining access to previously inaccessible assets and managers, at our first Round Table in Geneva on 28 June. The Bitcoin, Blockchain and Crypto revolution will be one of 7 subjects on the agenda.

Today we look at how Bitcoin will disrupt the current nexus of power between top tier Silicon Valley VC Funds and bulge bracket investment bankers in New York – what I call Wall Street West and East. This may lead to new opportunities to invest at the early stage with better risk adjusted returns than current models. Or it may lead to scams and bubbles and become a footnote in history. Or, like most disruptive innovation it might be scams and bubbles first and then change the world later.

Wall Street West is my name for the permanent aristocracy of top tier VC Funds on Sand Hill Road. Today they are far removed from their founding days as early stage investors. Today they are more like momentum investors who accumulate large % stakes in private companies before taking them to their connections in Wall Street East (i.e. the bulge bracket investment bankers in New York).

John Doerr of Kleiner Perkins Caufield & Byers famously called the personal computer industry’s growth from zero to $100 billion in 10 years “the greatest legal accumulation of wealth in history.” Then he saw how that the PC industry was a small wave compared to the Internet which went from zero to $400 billion in 5 years. “There are waves,” says Doerr, “and then there is a tsunami.”

It has been a great ride, but it is coming to an end.

The tsunami referred to by John Doerr is what we will in future call the Centralized Internet and recognize as a 20-30 year period in a multi-century history of the Internet. The next tsunami, powered by Bitcoin, Blockchain and Crypto will be the Decentralized Internet. This brings the Internet back to its founding days as a decentralized network. Bitcoin, Blockchain and Crypto technologies will enable the Decentralized Internet by creating a digital value exchange system.

The Decentralized Internet will also be funded in a decentralized way. This is what will disrupt Wall Street West and East. The value creation will be even bigger than the Centralized Internet, but these gains will be much more broadly distributed (good news for reducing inequality).

The Decentralized Internet will be powered more by the Rest than the West.

A big theme on Daily Fintech is “first the Rest then the West”.

For most of the 20th century, technology was limited to the West. Countries in the Rest (formerly known as developing, then emerging, then rapid growth economies) were “tech deserts” until those economies started to open up (first China, then India, then Africa). Then technology adoption started to flow from the West to the Rest; the last decade has been a boom time for Western tech firms selling to the Rest.

Now the flow is reversing as technology adoption starts in the Rest and then goes to the West. For example, look at Xiaomi to see the future of mobile phones and Alibaba for the future of e-commerce and Paytm for the future of mobile money.

Firms in America and Europe will profit from this shift, but will not drive the shift. This is the same as Britain making money investing in America (when America was an emerging market); British firms made money, but American firms drove the shift and took the lion’s share of the profits.

This megatrend is not limited to Fintech, but within Fintech mobile payments and mobile e-commerce is the big disruption and that is happening first in the Rest and then will flow to the West. Note that I am referring to technology adoption. Where something is invented matters a lot less than where and how it is adopted, as Steve Jobs taught us after wandering around Xerox Parc and seeing the first graphical user interface and using that for the Mac. Network effects and branding have replaced patents as the technology moat.

The Centralized Internet was dominated by Silicon Valley companies. The top tier Silicon Valley VC Funds could network with the best ventures without using more than half a tank of gas in a Ferrari. This was fortunate because VC Funds have had trouble globalizing and many have given up the challenge.

This opens the market up to new innovation such as Initial Token Offerings (ITOs). These are currently at the bleeding edge stage, with lots of risk, scams and sketchy characters that are typical of the early days of a disruptive technology (think Silk Road and Mt. Gox). You can learn more about ITOs and attempts to create a self-regulatory code of conduct on this discussion on the Fintech Genome.

This is still very early days, but the key point about Initial Token Offerings is that they are a) permissionless and b) global. Anybody can invest from anywhere. This is the power of a global network that the top tier VC Funds catalyzed with their investment in Centralized Internet players. Now the genie is out of the bottle and those same top tier VC Funds have to compete on a level playing field with anybody who has capital and insight.

Watch out when this tsunami crashes on the shore

Bull markets end in a frenzy. The bull market in Centralized Internet ventures is currently in a frenzy. People look for historical analogies to the Dot Com era, but as the old saying goes “history does not repeat but it does sometimes rhyme”. Most of the frenzy/overvaluation this time around is in private not public markets. For more data on this, see this post.

This led to a strange inversion of the norm during 2015 and 2016 when private companies were valued higher (on paper at least) than public companies.

Thanks to artificially low interest rates for a long, long time, even public stocks are overvalued on historical norms. So the ending of the Centralized Internet will be brutal. From this rubble will emerge the new Decentralized Internet.

Liquidity

For many reasons, the IPO bar keeps getting higher. So ventures need much longer and much more capital before getting to liquidity. This is good for really big funds in the short term, but will end badly when the public/private inversion ends. ITOs in contrast offer liquidity from day one.

Don’t need $ billions for data centers

The key point about the Decentralized Internet is that you do NOT need $ billions for data centers, because the network is powered by the computers of the users in the network.

This ends one of the wonderfully simple ways that top tier VC Funds made money. They tracked ventures until they saw signs that hyper-growth was about to start, knowing that large amounts of capital for data centers (and other things) was needed to fund that hyper-growth.

Some centralization, but permissionless

Bitcoin today has a scalability problem. For more, read this post. To put that in perspective, pundits for decades have talked about the Internet’s scalability problems (and yet it has scaled very well).

To scale Bitcoin, it is likely that some form of offchain processing is needed; about 80% of Bitcoin transactions today are offchain. The cyber purist view that every human will run a full node that records every transaction is clearly not technically feasible at scale.

It is likely that this will happen in future through something like Lightning Network.

This is not the post to explain how Lightning Network works. Here are a couple of good introductions:

https://www.youtube.com/watch?v=jUhe7J6-aG0

https://www.youtube.com/watch?v=BFXrTS_MJlQ

The assumption about offchain processing is that it has to be centralized. Offchain processors today such as Coinbase and Bitpay are centralized.

That assumption is false. As we have seen from services such as Skype, large scale services can be decentralized. However, there is something more important than centralized vs decentralized which is permissioned vs permissionless. Skype is decentralized but it is controlled by Microsoft. The idea behind Lightning Network is that anybody can choose to run a full node or a Lightning Network node. Permissionless adds economic incentive and makes it scalable.

A global Wall Street, spanning both early and late stage that is truly decentralised and permissionless will change the game.

Join us in Geneva on 28 June

One of the subjects for our Round Table in Geneva on 28 June will be:

Bitcoin Disruption and the possibility that permission-less innovation and decentralization will change the game.

Note; this is one of 7 subjects on the agenda.

If you are interested in attending this Round Table, please email julia at daily fintech dot com and we will send you the full agenda and other details. Please note that this Round Table is invite only for Family Offices, Private Banks and Asset Managers.

June 10, 2017 at 10:20AM http://ift.tt/2t5fZj4 from Bernard Lunn http://ift.tt/2t5fZj4