Why was the first day listing of Paytm so weak?

One reason offered is that the pricing was too steep. The other reason was that too many loss making digital IPOs had hit the market recently so there was some boredom. However, the bottom line was that the listing was disappointing. On 18-November, Paytm made a not-so impressive debut on the bourses. After opening 9% lower on listing, the stock of Paytm eventually closed the listing day with losses of 27%.

The closing price on the NSE was Rs.1,564 against the IPO price of Rs.2,150. It is estimated that the value erosion for the IPO investors was to the tune of Rs.38,000 crore. The pressure also emanated from the fact that it was subscribed just 1.89 times means there was always going to be excess supply in the market.