NEW DELHI: In what appears as another dot-com crash, share prices of new-age internet-run companies continue to fall at an alarming pace. On Monday, three big companies- Zomato, Nykaa and PayTM- were under tremendous selling pressure and tanked as much as 20 per cent.
Investors have now lost around Rs 1.20 lakh crore in these three companies since they got listed on the domestic bourses at rich valuations. PayTM, which had launched India's largest IPO in November 2021, alone has wiped out about Rs 80,000 crore of investors' wealth as its market cap has now slipped below 60,000 crore-mark.
At its issue price of Rs 2150, PayTM's m-cap was pegged nearly Rs 1.40 lakh crore. Zomato and Nykaa, the two companies whose m-cap had breached Rs 1 lakh crore-mark on their respective listing day, also saw their valuation going down in the sell-off season.
Zomato's m-cap on Monday was little lower than Rs 72,000 crore while Nykaa’s m-cap stands at Rs 82,000 crore. From their peak level, the fall in m-cap is much more as the two firms valuation was hovering around Rs 1.20 lakh crore level during mid/late November 2021.
Individual stock wise, shares of Zomato saw maximum bloodbath on Monday. After a dreadful Friday, Zomato fell nearly 20 per cent to close the Monday session at Rs 91.40 on the BSE. The stock of the foodtech giant has plunged 27 per cent in past two trading days and if industry pundits are to be believed, its valuation now stands lower than that of rival Swiggy.
Zomato has tanked 45 per cent from its 52-week high of Rs 169.10 hit on November 16, 2021. FSN E-Commerce Ventures (Nykaa) also hit a new low of Rs 1,693 on Monday and closed session 13 per cent lower at Rs 1,735. The stock price of Nykaa has shed 33 per cent from its record high of Rs 2,574 (November 26, 2021).
Meanwhile, PayTM touched a new low of Rs 881 on Monday, lower that what Macquarie analysts had predicted. It closed the session 4.43 per cent lower at Rs 917. Currently, the stock is trading 55 per cent lower from its all-time high of Rs 1,961.05.
"Investors in high value new-age tech stocks are paying the price for irrational exuberance. Some of these beaten down stocks may offer long-term value," said DVK Vijayakumar, chief investment strategist at Geogit.