As the shares of One97 Communications, the parent company of Paytm, continued to be in a free fall on Monday, several users took to social media to share memes related to stock markets, while some directed outrage towards Paytm’s IPO managers for its pricing.
However, when one user directed that criticism towards Uday Kotak, the CEO and MD of Kotak Mahindra Bank, the veteran banker responded saying the user must get his facts right.
“Kotak did not lead manage Paytm. Kotak did lead manage Zomato at issue price 76 ( current market price 150), Nykaa at issue price 1125(current market price 2100),” he said in a tweet.
Mr. Shah please get your facts right. Kotak did not lead manage Paytm. Kotak did lead manage Zomato at issue price 76( current market price 150), Nykaa at issue price 1125(current market price 2100). https://t.co/0G5SJeslkz
— Uday Kotak (@udaykotak) November 22, 2021
According to Paytm’s DRHP filing with the SEBI, Morgan Stanley, Goldman Sachs, Axis Capital and Link Intime were the lead managers of the IPO.
Shares of Paytm hit a low of Rs 1,271 on the BSE today, which is over 40% down from its issue price of Rs 2,150 and more than 18% lower than the close on November 18, the day of listing. The stock closed nearly 13% lower at Rs 1,362.
The stock had listed at a discount of 9 percent and closed down 27 percent on November 18.
Paytm, the biggest public offer in Indian capital markets, saw the worst listing performance in a decade as brokerages flagged several risks related to uncertainty over the business model, path to profitability, and concerns over steep valuations.
On the second day of its trading, the crash in the stock came amid weak market sentiment on Monday as benchmark indices Nifty 50 ended 1.8% lower at 17,441.05 points and the Sensex was down 1.96% at 58,465.89 points.
Although both Zomato and Nykaa, recent listings which Kotak Mahindra Bank did manage, saw a weak session on November 22, they are 97% and 86% higher than their respective issue price. While shares of Zomato closed down 4.6% at Rs 150.05 on Monday, those of Nykaa closed almost 1% lower at Rs 2,097.80.