As the BharatPe vs Paytm war looks like, founder Ashner Grover has officially criticized Vijay Shekhar Sharma’s decision to “wrongly price” the fintech firm’s public offering, saying that a failed listing leads to a frenzied cycle of IPOs in India. terminates.
After its first failure on the Bombay Stock Exchange, Paytm’s shares continue to fall. It witnessed the worst performance in recent history, rising 27 per cent to Rs 1,560 from the issue price of Rs 2,150.
in conversation with monecontrolGrover, whose firm recently got a small finance bank license, said the company gave Chinese investors their money back at public market price.
“I used to tell investors that there are going to be two markets – pre-paytm and post-paytm because post paytm is going to tank and that is exactly what happened. The reason is quite simple, you have mispriced your IPO,” Grover said.
“You have made Rs 18,300 crore IPO Out of which 55 percent was secondary. You did price optimization. It is Chinese investors who sold their shares through this IPO. Indian market ko kharab karke apne Chinese investors ko unka paisa wapas diya hai. (You disturbed the Indian market to refund Chinese investors’ money),’
According to Grover, whose company turned a unicorn earlier this year, this development is likely to have a huge impact on upcoming IPOs including LIC’s in India.
LIC is expected to file the draft prospectus, which is considered to be the largest public list in the country, in the next two weeks.
“All upcoming IPOs are now likely to be re-evaluated, including LIC’s which was supposed to be the biggest ever. The government had to disinvest. If it gets a lower price then the government will face difficulties as their disinvestment target will not be met.
Moneycontrol has contacted Paytm. The story will be updated once they respond.
Sharma, on the other hand, asked the employees to keep their heads down and not get bothered by the market sentiment and focus only on expanding the business.
It’s not often that the founders or CEOs of top companies publicly lash out at the competition. Moneycontrol has reached out to Paytm for comment. The story will be updated once they respond.
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