After Paytm's poor show in its stock market debut, analysts and investors have been expressing concerns over the valuations and prospects of the new-age technology firms.

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Paytm's parent One97 Communications, last Thursday, made a weak market debut with the stock closing at a discount of 27 percent to its issue price of Rs 2,150 on that day.

While the stock did rebound on Tuesday after falling 36.7 percent in two sessions, the company continued to face strong criticism over its valuation, especially on social media. Many investors, in fact, also criticized the banks managing IPOs for "having set unreasonably high valuations".

One Twitter user in particular targeted Uday Kotak, CEO and MD of Kotak Mahindra Bank, for the Paytm IPO debacle.

“@udaykotak please take responsibility for wrong pricing of #Paytam (sic) IPO and reward them to compensate the losses,” the user said on the micro-blogging platform.

@udaykotak please take responsibility for wrong pricing of #Paytam IPO and reward them to compensate the losses https://t.co/Izl9jBPt2x

— Harshad Shah (@harshadshah1953) November 22, 2021

According to Paytm’s draft red herring prospectus (DHRP) filings, the lead managers for the public offer were Morgan Stanley, Goldman Sachs, and Axis Capital. Paytm’s IPO suffered due to steep valuations when compared to the challenges faced by the company as highlighted by analysts.

The company has been called a “cash guzzler” by international brokerage house Macquarie, that has set a target price of Rs 1,200, or a downside of 44 percent against its issue price of Rs 2,150.

The shares continued to rise for a second straight day on Wednesday in a rebound after a series of losses. At noon, the Paytm stock traded 14 percent higher at Rs 1,703.6 on BSE, taking its gains to 25.2 percent in two straight days.