It’s turning into a monumental year for India’s stock market, as yet another big startup makes its public debut. But Paytm, which started trading in Mumbai on Thursday, spoiled the party: Its shares opened below the 2,150 rupees ($28.60) issue price, before closing down 27% at 1,564 rupees ($21).The flop reflects fears about Paytm’s business. The company, which is now worth almost $14 billion, lost hundreds of millions of dollars last year and seems far from ready to turn a profit. It’s also up against growing competition from some of the biggest tech firms in the world.
The digital payments company raised 183 billion rupees ($2.5 billion) in its initial public offering. It’s the largest ever in the country when measured in local currency, surpassing Coal India’s in 2010. That IPO was worth 155 billion rupees ($3.48 billion), according to data from Refinitiv.