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BUSINESS EYE DECEMBER 03, 2021 | The Indian Eye 43

did the Govt bill against crypto

currency lead to Paytm’s disastrous

launch of biggest iPo?

Cryptocurrency industry urges the government to take a nuanced approach towards regulating crypto assets in India and
asked investors in the country to remain calm

OuR BuREAu

New Delhi
aytm became the largest initial
public offering (IPO) launched
Pin the Bombay Stock Exchange
(BSE), as its parent company, One97
Communications, last week launched
its IPO with the value of Rs 18,300
crores. However, amid weak market
sentiments, immediately after the
launch, the shares of Paytm traded in
the red zone and fell over 20 per cent
within minutes of trading.
Madhur Deora, the Chief Fi-
nancial Officer (CFO) of Paytm
said that the company’s IPO is not
just the largest ever in BSE, but is
also the largest fintech IPO in Asia
and is the fourth largest fintech IPO
globally. “I knew that it is the largest
IPO of BSE, but I was not aware that
this IPO is the largest Fintech IPO
of Asia or the fourth in the world.
Someone here told me about it; we
are happy (to know),” he said. Paytm Chief Executive Officer (CEO) Vijay Shekhar Sharma along with his son Vivaan rings the bell during the Initial Public Offering (IPO) listing
The IPO was launched in a tradi-
tional launching event at the histori- ceremony, at Bombay Stock Exchange, in Mumbai (ANI)
cal Convention Hall of the Bombay
Stock Exchange building and the rit- ‘crypto mania’ operating as a herd- ulation of Official Digital Currency Speaking at an interactive session
ual of gong ringing took place exactly like effect amongst young Indian in- Bill, 2021’, to be introduced in the organized by ICC virtually, Sharma
at 10 am, marking the formal launch vestors. The Indian government, now winter session of Parliament begin- said crypto is Silicon Valley’s answer
of the IPO. planning a Bill to regulate the pri- ning November 29, seeks to “create to Wall Street. “I am very positive
However, for Paytm, India’s pi- vate cryptocurrency market, is right a facilitative framework for creation about crypto. It is fundamentally
oneering digital payments start-up, to be concerned, given the extreme of the official digital currency to be based on cryptography and will be
its IPO launch dream couldn’t have ‘volatile’ nature of investment in pri- issued by the Reserve Bank of India. the mainstream technology in a few
started on a more disastrous note. vately-manufactured digital money,” The Bill also seeks to prohibit all pri- years like the internet which is (now)
Shares continued to plummet for a wrote Deepanshu Mohan, a market vate cryptocurrencies in India, how- part of daily life,” he said.
second day after its $2.5-billion IPO, analyst, in a column. ever, it allows for certain exceptions Currently, there are no partic-
marking one of the worst debuts ever Analyst believe the crypto factor to promote the underlying technolo- ular regulations or any ban on use
by a major technology company. Its could be affecting the market. gy of cryptocurrency and its uses”. of cryptocurrencies in the country.
stock fell further by about 13% after Meanwhile, the cryptocurrency BuyUcoin CEO Shivam Thakral Prime Minister Narendra Modi last
three days of the launch (with a 27% industry on Wednesday urged the said it expects the Bill to accommo- week held a meeting on the crypto-
plunge on its debut Thursday), cut- government to take a nuanced ap- date the aspirations of Indian crypto currencies with senior officials and
ting its market value to about $12 bil- proach towards regulating crypto as- owners, Indian crypto entrepreneurs, indications are that strong regulatory
lion. Paytm’s parent company, One sets in India and asked investors in and investors who have put their steps could be taken to deal with the
97 Communications Ltd, raised a re- the country to remain calm and not faith in India’s crypto growth story. issue.
cord IPO sum, but its disastrous trad- arrive at a rushed conclusion, a day Also reacting to the move, Pay- Sharma also said once Paytm’s
ing debut sparked criticism that the after the government listed for the tm founder Vijay Shekhar Sharma revenue crosses $1 billion, it will be
company and its investment bankers introduction of a Bill to ban all such on Thursday said cryptocurrency is taken to the developed countries.
had pushed too hard in the offering. cryptocurrencies, with some excep- here to stay and it is fundamentally Sharma claimed international inves-
“Another illustrative case of this tions. based on cryptography, the study of tors have a better understanding of
‘Wild West’ investor sentiment is the ‘The Cryptocurrency and Reg- secure communications techniques. Indian entities than Indian investors.

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