Paytm IPO, biggest in India's corporate history, lists 9% below issue price
Paytm Share Price: Paytm made its debut on the NSE and BSE at 9 per cent discount to the issue price Rs 2,150.
One97 Communications, the parent of the digital payments giant Paytm, made its debut on the stock exchange today. Paytm shares started trading at Rs 1,955 on the BSE or 9 per cent lower than the issue price of Rs 2,150. On the NSE, Paytm shares listed at Rs 1950.
Paytm IPO, biggest in the country's corporate history, had priced its shares in a price band of Rs 2,080-2,150 per share, valuing the company at Rs 1.39 lakh crore at the upper end of the price band. With the Rs 18,300-crore share sale via the issue, Paytm IPO became the largest fintech IPO in the Asia Pacific region. It broke the record held by Coal India Limited that raised over Rs 15,000 crore.
Paytm IPO was also the second-largest fintech IPO of 2021 globally, after Spain-based Allfunds IPO. Overall, Paytm will be the fourth largest fintech stock debut, globally.
"Retail investors should remain cautious as the overall market is in profit booking zone pushing maximum stocks in downside territory. Paytm’s future growth is a key to watch for long term investors," Ravi Singh, Head of Research & Vice President, ShareIndia, said.
Manoj Dalmia, founder and director, Proficient equities private limited, said that the reason for weak listing is because the company is overvalued to global peers. 75 % of promoters are from other countries and are selling stakes by OFS. "The RBI most likely to bring policies for fintech in BNPL space. Monetization of UPI could trigger some game change which if free of cost currently," he said.
Paytm saw participation from blue chip investors like Blackrock, Canada Pension Plan Investment Board, GIC, ADIA, APG, City of New York, Texas Teachers Retirement, NPS Japan, University of Texas, NTUC Pension out of Singapore, University of Cambridge etc. Retail investors lapped up for 1.66 times the 87 lakh shares reserved for them.
Paytm IPO comprised a fresh issue of equity shares worth Rs 8,300 crore and an offer for sale (OFS) of shares worth up to Rs 10,000 crore. The OFS, or secondary share sale, consisted of the sale of shares worth up to Rs 402.65 crore by founder Vijay Shekhar Sharma. While 75 per cent of the offer was reserved for QIBs, 15 per cent was reserved for non-institutional investors and the remaining 10 per cent for retail investors.
Incorporated in 2000, One97 Communications is India's leading digital ecosystem for consumers and merchants. It offers a range of services to the users – payment services and financial services.