Paytm shares tank another 13%, market cap drops below $12 billion

Shares of Paytm slumped another 13 per cent on Monday, extending its two-day drop to 37 per cent—marking one of the worst debuts ever by a domestic company and a major global technology company.

The start-up, backed by Alibaba’s Ant Financial and SoftBank, saw its market value drop below $12 billion (Rs 88,185 crore) as against a valuation of $18.7 billion (Rs 1.39 trillion) it got in its IPO. The disastrous debut has raised question marks over how the company and its investment bankers arrived at the valuation for its Rs 18,300-crore maiden offering, the largest-ever in the domestic market. After dropping to a low of Rs 1,271 apiece, the stock ended the day at Rs 1,360, sharply below its issue price of Rs 2,150.