Paytm IPO Listing: Shares of One 97 Communications fell more than 20 percent in early trade after listing. On the National Stock Exchange, the company’s shares opened at Rs 1,950, down 9.3 per cent or Rs 200 from its issue price of 2,150. However, after this the stock fell by 21 percent.
Paytm IPO Listing : Digital payment company Paytm, which brought the largest IPO (Initial Public Offering) in the history of the country, got listed in the stock market on Thursday. However, the company’s stock market debut was weak. Shares of Paytm’s parent company One 97 Communications fell more than 20 percent in early trading after listing. On the National Stock Exchange, the company’s shares opened at Rs 1,950, down 9.3 per cent or Rs 200 from its issue price of 2,150. However, after this the share prices fell further and the stock fell by 21 percent. During this, they reached the intraday low of 1,705 ie the day’s low. The shares of the company were being recorded at 11.03 am at a price of 1,633.95. However, despite the weak debut, the company’s market valuation has crossed 1 lakh crore.
Market analysts believe that the expansive valuation of Paytm has been the reason behind the fall in its stock price. Analysts at the Macquarie Research firm said in a note that the company’s business model “lacks focus and direction.” The company also said that becoming profitable is still a big challenge for the company.
Let us tell you that Paytm, the top company of the digital mobile payment sector, had brought the country’s biggest IPO so far. This IPO of 18,300 crores was bigger than the biggest IPO ever – Coal India’s IPO of 15,000 crores. The company’s IPO was closed on November 10, after which it has made its trading debut in the stock market today. Paytm’s IPO was subscribed up to 1.89 times by the end of the bidding process.
Weak response was seen only after opening of IPO
The company’s IPO initially received a very mixed response, while according to many reports, its prices are also seeing a fall in the gray market, the company had kept the price band of its shares from Rs 2,080 to Rs 2,150 per share. Retail investors could bid for a minimum of six shares in one lot to 15 lots. The price of one lot was coming at Rs 12,900 on the upper price band.
How was the IPO subscription?
Paytm’s Rs 18,300 crore IPO was taken over by foreign institutional investors. According to information received from the stock market, Paytm’s parent company One97 Communications Ltd. The IPO of IPO received bids for 5.24 crore equity shares against an offer size of 4.83 crore shares. Qualified Institutional Buyers (QIBs), who were not very enthusiastic about the IPO in the first two days, subscribed for 1.59 times the shares they had reserved.
Foreign Institutional Investors (FIIs) subscribed for 4.17 crore shares against 2.63 crore shares reserved for QIBs. Retail investors subscribed for 1.46 times more than the 87 lakh shares reserved for them. On the other hand, non-institutional investors made bids for only eight per cent of the 1.31 crore shares reserved for them.
Paytm had allotted its 8,235 crore shares to more than 100 institutional investors. The Government of Singapore was also involved in this. In the IPO of Paytm, there was a proposal to raise Rs 10,000 crore through fresh issue and offer for sale (OFS) of 8,300 crore shares.
The OFS includes shares up to Rs 402.65 crore by Paytm CEO Vijay Shekhar Sharma, up to Rs 4,704.43 crore by Antfin (Netherlands) Holdings, up to Rs 784.82 crore by Alibaba.com Singapore E-commerce and up to Rs 75.02 crore by Elevation Capital v FII Holdings. sales are included.