Paytm to Ola Electric: New-age tech stocks plunge up to 66% below IPO price amid market slump

India’s new-age tech stocks, which proved to be a favourite among domestic investors in past few years, have taken a major hit amid market correction.

Key factors such as concerns over a global trade war triggered by the US President's aggressive push for trade tariffs, economic uncertainty, weak Q3 earnings and fear of potential recession in the US economy have tarnished investors sentiments. As a result, NIFTY50 and SENSEX have corrected nearly 5% each so far in 2025.

• *As of March 11, 2025
• **Nykaa shares went a 6-for-1 basis stock split on November 10, 2022

As per the above table, shares of Swiggy, Ola Electric Mobility, Honasa Consumer (Mamaearth), Paytm, Delhivery and others are trading at significantly lower prices compared to their initial IPO price band.

Several factors, such as stretched valuations, regulatory actions, and lack of a clear path towards profitability, have led to corrections of up to 68% in these stocks.

Paytm Payments Bank was restricted from taking deposits, offering credit services or facilitating fund transfers because of persistent non-compliance. As a result, the stock hit an all-time low of ₹310 per share in May 2024 but managed to recover some ground after resolving most of its regulatory issues. The stock is still down nearly 30% so far in 2025.

Bright spot amid steep correction

Zomato and PB Fintech have remained a bright spot amid steep correction. Shares of Zomato, which listed in July 2021 at around ₹115 per share, still trade above its IPO price band of ₹76 per share. Turnaround from net loss to profitability and consistent growth in Blinkit business has supported the company’s share price. However, the stock is down over 31% from its 52-week high of ₹304.7.

Meanwhile, PB Fintech, the parent company of PolicyBazar website trades at ₹1,421 per share above its IPO price band of ₹980. Market share gain and improvement in profitability have supported the stock price.