PayTM IPO loses 27.5% on debut
PayTM listed in stock market 18-Nov-2021 at INR 1950. It further lost 27.5% at the close of the day. The IPO offered stock price was 2150 and it closed at 1560.
I naively applied for full retail limit at 90 shares and got allotted 70 share. So I lost (2150-1560)*70 = 41,300 on first day itself. I wish I had never applied for this IPO or was never allotted the shares.
The irony is that in many IPO in which I applied, I didn't got any allotment. All of then listed in profit. The one in which I got allotment, I lost heavily!
On next trading day (22-Nov-2021) PayTM again lost 12.9% and closed at 1359. My total loss was at 36.7% (55,300). Now I don't know what to do.
After PayTM IPO closed (after closing hours of the 3rd day of IPO) I started expecting some losses, since retail subscription was just 1.66 times and overall it was 1.89 times subscribed. I thought the low subscription was because it was a very big issue of 18,300 crores, but didn't realised that low subscription was because it was over priced IPO and a bad company.So I was expecting it to list around 2000 and remain steady at that prices. But to my shock it closed at 1560.
People are saying that its real price is 1000 - 1200 or even lower. Now I don't know what to do. Should I book loss and exit or hold it for long time.
Finally I understood that my understanding, judgment and decisions are wrong 😞. This loss has badly shaken me and I hope I can learn a few things from this loss.
Ordinary retail investor does not have means and time to understand the complexities of IPO. They have herd mentality. Promoters, merchant bankers and SEBI officials please do something to avoid shaking the trust of retail investors in stock market.
