Title: Paytm IPO, a case of deliberate overpricing?

Authors: Seshadev Sahoo; Saurabh Khandelwal

Addresses: Department of Finance and Accounting, Indian Institute of Management Lucknow, Uttar Pradesh, 226013, India ' RITES Ltd., Plot No. 1, Sector-29, Gurugram, 122001, Haryana, India

Abstract: This case study presents a technical analysis of Paytm's IPO launched in November 2021, which garnered ₹18,300 crores through a combination of new issuances and offers for sale (OFS). The study investigates the reasons behind the subsequent 56.5% share price decline within three months. In-depth examination of Paytm's pre-IPO performance, post-IPO financials, and potential forecast impacting the listing price is conducted. The authors delve into the motivations driving the IPO and discuss shareholder profit maximisation. Regulatory oversight's role in approving such listings is also scrutinised. The study highlights the necessity of comprehensive due diligence, including financial performance assessment, management evaluation, and corporate governance analysis, in IPO investments.

Keywords: regulatory oversight; due diligence; digital economy; financial performance; fintech; initial public offering; IPO; pre-IPO investors; anchor investors; demonetisation; start-up; investors return; forecasting; projections; Dupont analysis.

DOI: 10.1504/IJICBM.2025.146448

International Journal of Indian Culture and Business Management, 2025 Vol.35 No.1, pp.1 - 16

Received: 18 Jul 2023
Accepted: 20 Jul 2023
Published online: 30 May 2025 *

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