On Monday, the Stocks of One 97 communication (Paytm) and Zomato were trading at an all-time low, since entering the stock market last year. Paytm, whose IPO price was Rs 2150, is currently trading at Rs 888.25 today. The tech stock sell-off continued with Paytm shares closed below the Rs 1,000 mark for the first time last Friday, discounting to the all-time high price at 54.57%. On the other hand, Zomato, whose IPO price was Rs 76 per share and a 52-week high of Rs 169, is currently trading at a share price of Rs 91.60.
Similar trends can be seen in other tech startups which are also trading lower on Monday. Here’s the performance of the top recently listed startups and how much down from all-time high
- One 97 Communication (Paytm): -54.57%
- Zomato: -45.00%
- PB Fintech (Policybazaar): -46.80%
- CarTrade Tech: -52.05%
- FSN E-commerce (Nykaa): -30.92%
“The well-funded tech startups that were a hit among the VCs, are yet to pass the market test”, tweeted Kritesh Abhishek, CEO and founder of Trade Brains. “Investors should be skeptical while investing in such startups who are yet to post high profitable results through their core business”, he added.
The Indian stock market has started with the market correction, where the leading market Index, Sensex has fell over −1,201.99 points (2.04%) on Monday and the Nifty down by −372.85 points (2.12%).
The market has been continuously falling since the last 4 trading sessions. Nonetheless, tech startups were not the only poor performers last week. Investors have become poorer by over Rs 10.36 lakh crore in the last four trading sessions as the domestic equity benchmarks extended their losses amid weak global trends. The Sensex and Nifty closed in the red for the fourth straight session on Friday amid continued selling by foreign institutional investors.
In line with the weak trend, the market capitalization of BSE-listed companies plunged by a massive Rs 10,36,636.17 crore in the last four trading sessions to stand at Rs 2,69,65,801.54 crore, last week!
