Title: India's largest fintech IPO: a case study of Paytm

Authors: Barkha Dhingra; Mohit Saini; Mahender Yadav; Megha Saini

Addresses: Department of Commerce, Maharshi Dayanand University, Rohtak, Haryana, India ' Department of Commerce, Maharshi Dayanand University, Rohtak, Haryana, India ' Department of Commerce, Maharshi Dayanand University, Rohtak, Haryana, India ' N.B.G.S.M. (Nirankari Baba Gurbachan Singh Memorial) College (Sohna), Sohna, Gurugram, Haryana, India

Abstract: India's momentous Initial Public Offering (IPO) year has been 2021. This case talks about the star of the show, Paytm IPO. One of the largest fintech IPOs in the Asia-Pacific region failed horribly on the stock market. Even though the company successfully raised the desired amount, investor enthusiasm for Paytm's offer was relatively low compared to other tech firms. The present study discusses the reasons for the debacle of the Paytm IPO, including excessively inflated pricing, Fear of Missing Out (FOMO), etc. The case discusses in depth the emergence of fintech and Paytm. The learnings from the case study follow this. It also highlights the modifications that the Securities and Exchange Board of India (SEBI) brought to tighten the IPO process. The regulator wants new-age IT businesses to tell precisely how they valued their stocks for IPOs, compare it to pre-IPO share sales and upload all pre-IPO investor briefings to enable investors to make educated decisions.

Keywords: fintech; Paytm; IPO; book building; case study.

DOI: 10.1504/IJDIPE.2024.137100

International Journal of Diplomacy and Economy, 2024 Vol.10 No.1, pp.57 - 77

Received: 30 May 2023
Accepted: 31 Jul 2023
Published online: 01 Mar 2024 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article