Biggest fall! Paytm tops the list of IPOs with worst losses on listing day

Paytm initiated its journey as a public company with a 27 per cent fall over its IPO (initial public offering) price on Thursday. Paytm's shares hit the lower circuit at 2:56 pm, and trading in the stock was halted. Its IPO price was Rs 2,150, its stock traded at Rs 1,560 apiece by the end of the day.

The crash in Paytm's stock wiped out Rs 40,000 crore of investor wealth on the first day, this is more than the entire market caps of companies like TVS Motors, TATA comm, MRF and Oberoi Realty. 

In a decade, even the next worst performers on the list had a lesser fall of about 10 per cent compared to Paytm.
Amongst IPOs with an issue size of more than Rs 1,000 crore, Coffee Day Enterprises Ltd fell by 17.6 per cent in Oct 2015, followed by Reliance Power Ltd, which fell by 17.2 per cent in Jan 2008,  ICICI Securities Ltd fell by 14.4 per cent on debut in March 2018, and Cairn India fell by 14.1 per cent in 2006, as per capital market data platform primedatabase.com.

 

According to IPO data of Chittorgarh.com, which is the financial platform of Chittorgarh Infotech Pvt Ltd, this is the worst listing-day performance for a mainboard IPO -- IPOs for large companies, with a minimum post-issue paid-up capital of Rs 10 crore in a decade. 

In 2011, a mainboard stock named Tijaria Polypipes Ltd had crashed 69 per cent on its stock market debut. Since then, the worst-performing mainboard stock on a listing day had been Healthcare Global Enterprises, which had fallen 21 per cent on its debut back in 2016. But Paytm's stock, which fell 27.4 per cent today, became the worst performing mainboard IPO over the last decade.

Paytm's 27 per cent fall is more than that of any US IPO, which has raised $2 billion or more. The worst-performing American IPO, which had raised $2 billion or more, was trading app Robinhood, which had lost 8.34 per cent on opening day. Paytm's first-day losses, in comparison, are three times as much.