After a disappointing market debut of Paytm, founder and CEO Vijay Shekhar Sharma advised his employees not to be disheartened by the Day 1 show of the company and instead continue efforts to build it as a listed firm, The Economic Times reported on Monday.
At the company’s virtual townhall, Sharma urged employees not to read too much into the criticism of its business model, the report said.
Paytm’s stock hit the lower circuit on Thursday, its listing day. On the Bombay Stock Exchange, the shares fell as much as 27 percent to Rs 1,564.15 on Thursday, eroding the company’s market capitalisation by almost a third of the IPO valuation to $13.3 billion.
The stock extended losses on Monday when the market resumed trading after it remained closed for Guru Nanak Jayanti on Friday.
One97 Communications' shares declined as much as 17 percent today. The stock was trading 17.48 percent lower at Rs 1290.80 on the BSE at 12:30 PM.
The performance of the company depended on its focus on market expansion and the execution of its team of employees, said Sharma in a four-hour call on Friday, ET reported, quoting anonymous sources. He said Paytm should respect all its shareholders as a publicly listed firm, it said.
Having a million retail investors meant Paytm had a million more believers, Sharma said, adding that it was the company’s responsibility to live up to the expectation of these investors, as per the report.
>>Also Read: What experts say on Paytm parent One97's shares now
Sharma, according to the report, also added that despite the market upheavals, hard work and execution of the company’s employees would define its value in the future. He cited examples of electric car maker Tesla, whose shares had also tanked on stock market debut.
Global brokerage firm Macquarie had initiated an 'underperform' rating on Paytm owner One97 Communications. In a note to its investors, Macquarie had said Paytm was dabbling in multiple business lines which inhibited it from being a leader in any business except wallets.
According to ET, there is speculation on whether Paytm rushed into the IPO. Quoting multiple sources, the report said employees believe Paytm did not adequately market the public issue which impacted the subscriptions.
First Published: IST