Why Paytm Share Price is falling like a knife

Hello friends, as you know Digital India's biggest company Paytm listed their IPO's at a valuation of almost 20 Billion dollars in indian stock market. IPO band price was in between 2080 Rs to 2150 Rs and it got listed at 10% discount, thereafter price is falling non-stop and now it is under 1400 rs at the time of writing this article. 

Now the companies valuation is around 13 billion dollars and it lost 7 billion dollars in market cap in just few days.

Why Paytm Share price is falling day by day?

Main reason of falling it's price is Listing the IPO at very overpriced valuation, 20 billion dollar and that's for a not profitable company and still it is very uncertain that how many years paytm will take to become a profitable company. 

People who are expert in stock market are really shocked to see the valuation of Paytm, and already many expert warn about overvalued valuation of Paytm.

If we talk about valuation and we compare to a prestigious bank of india and that is Punjab National Bank (PNB) that's valuation is around 5 to 6 billion dollars and paytm got this much valuation, that's the main reason paytm share price and market cap is falling very fast.

If you are thinking to invest in Paytm, then expert opinion is that you should wait for their profit results to come out and then decide whether you should invest in One97 Communications or not.