Paytm launched the largest public issue in India, raising Rs 18,300 crore that comprised a fresh issue of Rs 8,300 crore and an offer for sale of Rs 10,000 crore by several shareholders, including the founder and investors.
The shares of Paytm’s parent company One97 Communications will make their debut at the stock market today, 18 November. The shares will be listed on the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE).
aap hain to hum hain ❤️ pic.twitter.com/fLftyLr2Ws
— Paytm (@Paytm) November 18, 2021
Paytm share price listed today at a discount of 9% at ₹1950 on NSE against its IPO issue price of ₹2,150 per equity share. The three-day initial public offering (IPO) of Paytm’s parent One97 Communications was launched on November 1 that concluded on November 3 with a price band of ₹2,080-2,150 per share.
The IPO was subscribed less than two times. The quota for qualified institutions was subscribed 2.79 times, whereas the retail investors’ portion was subscribed 1.66 times. Non-institutional investors’ quota was subscribed only 24 per cent.
Shares were trading at around Rs 1,560 by the time of writing this. The company’s market capitalization currently stands at 1.01 lakh crore compared to the IPO valuation of Rs 1.5o lakh crore.
Speaking on Paytm share listing, Parth Nyati, Founder at Trading said, “The company has been loss-making and there is no sign to turn profitable in near future. Aggressive investors who got the allotment can hold the stock with a long-term view however the investors who applied for listing gain can exit on the bounce back. New investors are advised to look for other opportunities where other new edge companies can perform much better than Paytm. We feel due to the brand the company sought high valuation and it might see a correction in the near term.”
The firm counts Chinese payments giant Ant and Japanese technology group SoftBank amongst its biggest backers.
Paytm founder Vijay Shekhar Sharma turned emotional during his address at the Bombay Stock Exchange, or BSE, on the company’s market debut this morning, after it completed India’s biggest-ever initial public offering or IPO.
“I hope the Paytm story can inspire entrepreneurs, even for the ones who do not have the background, but I hope this inspires them that they can do it,” Sharma said during the listing event at the BSE in Mumbai on Thursday. “I believe India is meant for stories like this and many more stories like this to come up.”
Paytm Group’s CFO Madhur Deora said his company has done what “many said it can’t be done”. “We have the bluest of blue-chip investors from the world and one million retail investors with us.”
Paytm grew quickly after ride-hailing firm Uber listed it as a quick payment option and its use swelled further in November 2016, when the government’s overnight ban on high-value currency notes boosted digital payments.
Paytm’s success has turned Mr. Sharma, a school teacher’s son, into a billionaire with a net worth of $2.4 billion, according to Forbes. Its IPO has also minted hundreds of new millionaires in the country.