Regret Not Choosing the Right Bankers for IPO of Paytm, Says Vijay Shekhar Sharma
Paytm, once a shining star in India’s startup ecosystem, has faced significant challenges since its IPO in 2021. 📉 Founder Vijay Shekhar Sharma recently opened up about his regrets regarding the bankers for Paytm.
The IPO Saga: A Lesson in Choosing Bankers Wisely
Vijay Shekhar Sharma, Paytm’s CEO, expressed his regret about not selecting the right bankers for the IPO[1]. He used a colorful metaphor, comparing the process to entering a temple:
“To enter the temple of God, you need the right priest… perhaps we didn’t choose the right one.”
This statement highlights the crucial role that investment bankers play in a startup’s public offering. 🏦
Key IPO Facts
| Aspect | Details |
|---|---|
| IPO Date | November 2021 |
| Issue Price | ₹2,150 |
| Listing Price | ₹1,950 |
| Total Issue Size | ₹18,300 crore |
| Bankers | ICICI Securities, JP Morgan, Goldman Sachs, Morgan Stanley, HDFC Bank, Citi |
Paytm’s Performance: A Rocky Road After IPO
Since its debut, Paytm’s stock has struggled to maintain its value. Here’s a snapshot of its performance:
| Metric | Value |
|---|---|
| Current Share Price | ₹672.40 |
| Drop from IPO Price | Over 65% |
| All-Time High | ₹1,961.05 |
| Current Valuation | $5.1 billion |
| IPO Valuation | $19 billion |
These numbers paint a picture of a startup facing significant challenges in the public market. 😟
Regret Not Choosing the Right Bankers for Paytm: Lessons for Other Startups
Sharma’s candid admission serves as a valuable lesson for other entrepreneurs. Choosing the right bankers is crucial for a successful IPO. Here are some key takeaways:
- Research thoroughly before selecting bankers
- Consider bankers with experience in your industry
- Look for a track record of successful IPOs
- Ensure alignment with your company’s vision and values
- Don’t rush the process – take time to make the right choice
The Startup Landscape: Paytm vs. Other Tech IPOs
While Paytm has struggled, other tech startups have seen success in their public offerings. Let’s compare:
| Company | IPO Price | Current Price | % Change |
|---|---|---|---|
| Paytm | ₹2,150 | ₹672.40 | -68.7% |
| Zomato | ₹80 | ₹300 | +275% |
| PolicyBazaar | ₹980 | ₹1,632 | +66.5% |
This table shows how differently these startups have fared since going public. 📊
Regret Not Choosing the Right Bankers for Paytm: What Went Wrong?
Several factors contributed to Paytm’s IPO struggles:
- Overvaluation: The company’s high IPO price was seen as too expensive by many investors[2].
- Complex business model: Paytm’s diverse offerings made it hard for investors to understand its core focus[3].
- Increased competition: Other UPI apps like PhonePe and Google Pay gained market share[3].
- Regulatory challenges: Recent restrictions on Paytm Payments Bank have added to the company’s woes[3].
Looking Ahead: Can Paytm Bounce Back?
Despite the challenges, Paytm remains a significant player in India’s fintech landscape. The startup’s journey serves as a cautionary tale for others in the ecosystem. As Sharma reflects on his regret not choosing the right bankers for Paytm, it’s clear that careful planning and expert guidance are crucial for startups aiming to go public.
In conclusion, by learning from these lessons, future entrepreneurs can better navigate the complex world of public offerings. 🚀
Sources:
[1] Inc42
[2] LinkedIn
[3] OfficeChai
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Thanks for reading !!
