A clutch of new age technology companies has lost nearly Rs 2.5 trillion or roughly $20 billion in market capitalization since they listed on the exchanges. Shareholders have been disappointed by either poor performance or unwieldy acquisitions. In some instances, the sale of stakes by investors post the expiry of the lock-in period, has dragged down the stock.
Although PayTm reported smaller losses, sequentially in the September quarter of Rs 571 crore and revenues grew 14% to Rs 1,914, the arrival of new competition has also prompted analysts to become more cautious. For example, analysts at Macquarie believe that Jio Financial Services “can pose a significant growth and market-share risk” for players such as Paytm and Bajaj Finance. PayTm has launched a buyback of shares at Rs 810 apiece, about 60% lower than its IPO price, but that has not enthused shareholders.
The…
