Paytm IPO, a case of deliberate overpricing

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.