Paytm Founder On Debut Rout: "New Business Model" Isn't Understood

Paytm's debut rout raised questions around impending initial public offerings (IPOs) on the until-now red hot stock market as valuations come under investor scrutiny.

Digital payments start-up Paytm made one of the worst major stock market debuts on Thursday as its shares fell more than 27% after the largest-ever IPO of the.

Paytm's debut rout raised questions around impending initial public offerings (IPOs) on the until-now red hot Indian market, including those of its smaller rival MobiKwik and hotel aggregator OYO, as valuations come under investor scrutiny.

While some investors had questioned Paytm's lack of profits and its lofty enterprise value of around 27 times gross profit, the extent of its price fall shocked many and wiped more than $5 billion off Paytm's IPO valuation.

As the price plummeted, it only stalled when Paytm shares came close to circuit breaking levels on Indian exchanges.