paytm ipo listing todayAll eyes are on the listing of India’s biggest Initial Public Offering (IPO) on Thursday, November 18. One97 Communications, the parent company of digital payments platform Paytm, which made its first public offering a few days back, is all set to make its debut at the broker. Road amid the sharp reaction of buyers. NS Paytm IPO The company, which is the largest of its kind in India, is planning to raise Rs 18,300 crore from the offer. paytm share Will be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) at 10 AM. Incorporated in 2000, One97 Communications is India’s leading digital ecosystem for consumers and merchants.
Paytm IPO open for subscription from November 1 to November 3. The payment platform has fixed the issue price band at Rs 2,080 – Rs 2,150 per share. The offer was a combination of a fresh issue of Rs 8,300 crore and an offer for sale of Rs 10,000 crore by selling to shareholders including the founder and investors.
Paytm’s parent company One97 Communications received bids for 9.14 crore shares against 4.83 crore shares offered for sale. Qualified institutional buyers subscribed 2.79 times the share reserved for them, while retail buyers bid 1.66 times the share earmarked for them. Non-institutional buyers booked 24 per cent of the shares set aside for them.
Paytm raised Rs 8,235 crore from 122 anchor investors by allotting 3.83 crore shares at Rs 2,150 per share. BlackRock Global Funds – through World Technology Fund (40.38 lakh shares) and World Financial Fund (6.376 lakh shares) – have garnered 12.2 per cent of the total anchor stake. About 43.62 lakh shares (11.4 per cent) have been allotted to CPPIB.
Though the offer was oversubscribed, analysts called it a weak response in comparison to other IPOs like Nykaa and Policybazaar, which were listed or issued recently. Nykaa IPO was subscribed more than 80 times and QIB subscribed its stake 91 times. Policybazaar’s IPO got subscribed 16.5x, mainly amid strong response from QIBs.
Not only this, the share price of Paytm in the gray market was falling continuously since the listing. On Wednesday, Paytm shares were fetching a premium of Rs 30 in the gray market, which was only 1.4 per cent higher than the final issue price of Rs 2,150. The company’s shares were trading at Rs 2,300 in gray market on October 7, which is Rs 150 or 7 per cent premium over the final issue price, but fell to Rs 80 on the date of IPO opening. Paytm’s IPO GMP fell by Rs 40 on the last day of the issue.
Analysts estimate that there will be a flat or marginal listing for Paytm with a premium of around 20 per cent over the final issue price.
“Paytm’s IPO received a weak response from investors as compared to other startup IPOs like Nykaa, Zomato, etc. Expensive valuations and continuing losses made investors wary. The road to profits also looks challenging. After sluggish subscriptions- The effect can be seen on the listing. I am expecting a very modest listing from a flat in Paytm, said Abhay Doshi, pre-IPO and founder of unlisted share platform UnlistedArena.com.
“We expect Paytm to list at a premium of around 20% from its listing price or in the range of 2100 – 2170. However, after looking at Paytm’s overall valuation and losses, we are asking investors to book profit on the day of listing. And wait for a decent correction of around 20% to re-enter. “The company’s future growth is crucial for long-term investors,” said Ravi Singh, Vice President and Head of Research, Share India.
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