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Business News/ Companies / Start-ups/  New-age stocks crash, Razorpay shines
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New-age stocks crash, Razorpay shines

Thursday’s stock market crash battered some of India’s most high-profile startups that went public recently, reordering the valuation hierarchy with relatively smaller and younger unlisted companies emerging more valuable than the erstwhile startup stars

RazorPay had joined the unicorn club in October 2020 and then quickly saw its valuation zoom to $7.5 billion in a subsequent round in December 202Premium
RazorPay had joined the unicorn club in October 2020 and then quickly saw its valuation zoom to $7.5 billion in a subsequent round in December 202

NEW DELHI : Thursday’s stock market crash battered some of India’s most high-profile startups that went public recently, reordering the valuation hierarchy with relatively smaller and younger unlisted companies emerging more valuable than the erstwhile startup stars.

RazorPay Software Pvt. Ltd, for instance, turned India’s most valuable fintech company, as shares of Paytm parent One97 Communications Ltd hit a new low of 771. Paytm’s valuation plunged to $6.67 billion ( 50,000 crore), below RazorPay’s $7.5 billion.

Bloodbath on bourses
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Bloodbath on bourses

RazorPay, a digital payments and financial services provider, had joined the unicorn club in October 2020 and then quickly saw its valuation zoom to $7.5 billion in a subsequent round in December 2021. A month before that, Paytm had sold shares in a 18,300 crore IPO at 2,150 apiece, commanding a nearly $20 billion valuation.

Paytm isn’t the only new-age stock to bear the brunt of the market plunge.

Six of the eight new-age technology firms listed on the Indian bourses in 2021 hit new lows on Thursday, eroding about 53% of their market capitalization on average.

Barring Easemytrip, which lost close to a third of the value from its 52-week high, the other seven companies saw their shares decline by at least 49% from their respective peaks.

The worst performers were automobile classifieds website CarTrade and digital payments platform Paytm.

CarTrade lost more than 70% from its 52-week high of 1,610. The stock—sold at 1,585 in the IPO—ended trading at 470 on Thursday.

Paytm, which launched the largest-ever IPO in India, lost more than 64% of its investor money from the IPO price of 2,150. Its shares are now over 60% below its 52-week high of 1,961. Other firms that have eroded more than 50% of their shareholders’ value were FINO Payment, PolicyBazaar’s parent company PB Fintech, and food delivery company Zomato.

Zomato sold shares at an IPO price of 76, and its valuation crossed $15 billion at its 52-week high share price of 169.1. It ended trading at 78.5 on Thursday. PB Fintech fell from its 52-week high of 1,470 to 652 on Thursday.

Relatively better-performing stocks such as e-commerce platform Nykaa, gaming firm Nazara Technologies, and hospitality startup Easemytrip were also under pressure on Thursday.

Nykaa’s shareholders have witnessed a 49% slide in their investment, from its all-time high of 2,574. Nazara Tech, which saw its stock triple from 1,100 per share at the time of IPO to over 3,350, saw its shares fall to 1,680 on Thursday.

EaseMyTrip has been the best performer among new-age tech stocks listed in 2021. It sold shares at an IPO price of 187, and rose to a high of 717 last year, but has lost a third of its value since then.

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Updated: 25 Feb 2022, 05:57 AM IST
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