Shares of One97 Communications Ltd, Paytm's parent company, on Thursday made a tepid market debut, listing with a discount of over 9% from the issue price of ₹2,150.
The stock was listed at ₹1,955, slipping 9% from the issue price on the BSE. It then tumbled 20.67% to ₹1,705.55.
At the NSE, it debuted at ₹1,950, registering a decline of 9.30% against the issue price.
"Paytm, the biggest IPO in India so far debuted the secondary market on a weaker note as compared to our expectations of a flat listing," Santosh Meena, Head of Research, Swastika Investmart Ltd, said.
The company commanded a market valuation of ₹1,26,737.50 crore in early trade on the BSE.
Ant Group-backed Paytm's ₹18,300 crore IPO was oversubscribed 1.89 times on the last day of India's biggest share sale last week. This was greater than miner Coal India's ₹15,000 crore offer a decade back.
The initial public offering of Paytm's parent company One97 Communications Ltd received bids for 9.14 crore equity shares against the offer size of 4.83 crore shares, according to information available with stock exchanges on November 10.
Paytm had fixed its IPO in a price band of ₹2,080-2,150 per share .
Incorporated in 2000, One97 Communications is India's leading digital ecosystem for consumers and merchants.
It offers a range of services, including payment services and financial services.
Launched by a son of a school teacher from a small town Aligarh nearly a decade ago as a platform for cellular recharging, Paytm grew rapidly after ride-hailing agency Uber listed it as a fast cost possibility.