Last year, there was a competition among new age tech companies to bring IPO. In 2021, giants including Paytm to Nykaa and Zomato entered Dalal Street, which caught the attention of market investors. However, investors have suffered huge losses by investing money from the shares of these companies. In fact, from Paytm to Nykaa and Zomato to Car Trade and Policybazaar, the IPO of ₹ 2.28 lakh crore to investors. Heavy damage has been done. This has been said in a report by Economic Times.
investors’ money lost
Heavy selling in shares of Paytm’s parent One97 Communications, Zomato, Nykaa, PB Holdings, which runs PolicyBazaar and Cartrade Tech has resulted in loss of investors’ wealth to the tune of ₹2.28 lakh crore. The market cap of these companies has registered a big decline. On Monday, a drop of ₹ 7,700 crore was seen in the market cap of these five companies.
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Paytm stock fell by up to 71 percent
Let us tell you that on Monday, the shares of One97 Communications were down 13%. Even on Tuesday, the company’s shares have broken up to 10 percent. The share of Paytm has come down to Rs 612. Let us tell you that Paytm had kept the issue price of Rs 2150 in the IPO. The shares of the company have not yet reached this level. Paytm’s all-time high is Rs 1,961, which was recorded on the day of listing. Since then, buying was seen in the shares of the company only in a few trading days, otherwise the company’s shares remained in loss every day. The share of Paytm has lost almost 71 percent of its issue price.
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Other companies
As of Monday’s trade, while Paytm’s market cap saw a decline of up to ₹72,000 crore, Zomato and Nykaa’s market cap declined by ₹64,000 crore and ₹53,00. At the same time, the market cap of PB Fintech has declined by Rs 34,647 crore, while that of Car Trade has declined by Rs 4,733 crore. Experts say that it is advisable to reduce investment in most new age companies as the selling pressure may persist for some time.