Paytm's Business Model Questioned On Day 1 At Markets

Paytm's steep plunge was astonishing, as shares changed hands at Rs 1,614 in afternoon trade versus the offer price of Rs 2,150.

Indian digital payments firm Paytm tumbled 25% on its maiden day of trade on Thursday, with investors questioning its lack of profits and the lofty valuations it gained in the country's largest-ever IPO.

Despite fears that Paytm's market debut might be less than stellar, its steep plunge was astonishing, as shares changed hands at Rs 1,614 in afternoon trade versus the offer price of Rs 2,150, valuing the firm at about $14.2 billion.

Then shares hit the lower circuit limit of Rs 1,564 on the Bombay Stock Exchange, which restricts purchases by investors to only that price or higher.

Founder and CEO Vijay Shekhar Sharma, who was visibly crying with joy at the opening ceremony, later told Reuters that he was unperturbed by the slide and did not regret listing in India.