11 years have passed since Bankia’s IPO but it continues to lead the classification of the worst stock market debuts in the world. In the first year on the Stock Market, the bank resulting from the merger of Caja Madrid, Bancaja, Caja de Canarias, Caja de Ávila, Caixa Laietana, Caja Segovia and Caja Rioja collapsed by 82%.
The entity then chaired by Rodrigo Rato set its market launch price at 3.75 euros per share, below the guideline range of between 4.41 and 5.05 euros initially set. The firm made an IPO with which it obtained some 3,100 million euros in a placement that included a tranche for retail investors that was attended by 270,000 savers.
One year later the value accumulated a depreciation of 82%. Along the way, the entity presented unaudited annual accounts, Rato resigned as its president and the Government decided to activate a plan to clean up the bank of more than 7,000 million euros. However, on May 9, 2012, the Executive of Mariano Rajoy announced its nationalization, through which its parent company, Banco Financiero y de Ahorros (BFA), became 100% public and the State kept 45% of Bankia.
Since then there has been no company that has registered a worse first year on the stock market, until now. The Indian digital payments operator One 97 Communications, known as Paytm, celebrates its first year as a listed value and does so with a 75% drop. Paytm has been affected by the strong correction that technology companies have accumulated since the end of last year due to the decision of central banks to end years of ultra-lax interest rates to control inflation.
The Indian company managed to place titles for 2,460 million dollars just a year ago in the largest opening of the Indian stock market in history. The digital payments firm managed to attract institutional investors such as BlackRock and the Canada Pension Plan Investment Board for its placement, but it never managed to exceed the IPO price.
Last week Softbank’s partial divestment of its capital was announced after the end of the lock-up period. The Japanese fund, known for its investments in Wework or FTX, got rid of a package of 4% of the Indian company’s capital, but remains its second largest shareholder, with 13%. On the other hand, in recent weeks banks such as Société Générale, Bank of America or Morgan Stanley have bet on value.
Its correction on the stock market is interpreted as the greatest exponent of the bursting of the Indian startup bubble and the strong correction of its valuations.
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