Shares in Indian financial technology company Paytm dropped more than 25% on its stock market IPO, cutting $5 bn off its valuation, according to a report by FT on Thursday.

  • Paytm generated $2.5 bn from its IPO, valuing the company at $20 bn, with its biggest investors Ant Group and SoftBank selling stocks in the company.
  • The 11-year-old firm has marketed itself as other Chinese financial groups such as Ant, with investments from mobile payments and fantasy sports to gold trading.
  • Meanwhile, the IPO attracted slow investor interest, with domestic entities, including mutual funds being concerned about its path to profitability and ability to compete with Big Tech competitors.

Shares in Paytm dropped nearly 26% to a low of Rs1,591($21.40) by Thursday. The IPO is the most significant in a number of listings by lossmaking, largely valued internet start-ups in India. Paytm down -20.00%