Explained: How Paytm’s weak stock market debut impacted investors

Paytm's stock sank nearly 28 per cent, hitting the lower circuit, due to criticism about the company’s expensive share valuation and lack of profits. Here's how it impacted investors.

The stock market debut of One97 Communications Limited, Paytm’s parent firm, proved to be a big disappointment for investors on Thursday. Hopes were high given the fact that it was the biggest initial public offering (IPO) in India’s history at Rs 18,300 crore, but the high-profile market debut turned into a disaster.

The company's stock sank nearly 28 per cent, hitting the lower circuit, due to criticism about the company’s expensive share valuation and lack of profits. The weak listing came as a blow to Paytm investors who lost a huge amount of money on paper. As of Thursday’s closing, Paytm’s plunge wiped out Rs 38,000 crore from the total market capitalisation.