Paytm listings at a discount, share price drops 25% when it debuts

Operator Paytm One97 Communications, backed by US investor SoftBank and Alibaba’s Ant Financial, was listed on Thursday with a 9% discount on its debut on Indian stock exchanges.

The action opened at Rs 1,950 on the National Stock Exchange and the ESB listing price was Rs 1,955, against the issue price of Rs 2,150.

As of 11:00 am, the share price has fallen again by almost 25% and was trading at Rs 1,613.80 each on BSE.

The mega initial public offering (IPO) of Paytm, one of India’s leading digital payment platforms, has received a mixed reaction from investors who subscribed 1.89 times last week.

Retail investors offered shares at 1.66 times the reserved portion, but non-institutional investors had offered only 24% of the reserved portion.

Prior to listing, brokerage firm Macquarie Research issued an “underperformance” rating on One97 Communications, parent company of Paytm, saying its business model lacked focus and direction.

Paytm was India’s largest public issue, raising Rs 18,300 crore which included a new issue of Rs 8,300 crore and an offer to sell (OFS) of Rs 10,000 crore by several selling shareholders including founder Vijay Shekhar Sharma and the investors. Net proceeds from new issues will be used to strengthen the Paytm ecosystem and invest in new business initiatives, acquisitions and strategic partnerships.

In July, Noida-based One97 Communications sought approval from the securities regulator for its Rs 16,600 crore IPO, the size was subsequently increased to Rs 18,300 crore.

One97 Communications, the parent company of the fintech platform Paytm, received the green light for the IPO from the Securities and Exchange Board of India (Sebi) in October.

Led by Founder and Managing Director Vijay Shekhar Sharma, the 11-year-old Noida-based company has expanded beyond digital payments into new categories of lending, gaming, wealth management, financial services and commerce. digital.

For the year ended March 2021, Paytm’s consolidated revenue declined 11% to Rs 3,187 crore, but managed to cut losses by 42% to Rs 1,701 crore.


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