Paytm makes a weak debut, lists over 9% discount from issue price

Paytm shares listing: The scrip of One 97 Communications, the parent entity of digital payments firm Paytm, got listed at Rs 1,950.00 apiece on the National Stock Exchange (NSE), thereby registering a fall of 9.30 per cent from its offer price of Rs 2,150.00.

Paytm share price: Shares of One 97 Communications, the parent entity of digital payments firm Paytm, made a weak debut and got listed at a loss of over 9 per cent below their issue price in the stock exchanges today.

The scrip got listed at Rs 1,950.00 apiece on the National Stock Exchange (NSE), thereby registering a fall of 9.30 per cent from its offer price of Rs 2,150.00, while on the BSE, it opened at Rs 1,955.00, down 9.07 per cent from the issue price.

The stock continued its downward momentum and inched further lower from its opening levels in the early trade touching a low of Rs 1,705.55 on BSE and Rs 1,705.00 on the NSE.

At 10:16, the scrip was trading at Rs 1,737.10 on the BSE, down 19.20 per cent from the issue price while on NSE it was at Rs 1,732.90. The market capitalisation of Paytm was at Rs 1,12,611.62 crore, data from the BSE showed.

Around 75.30 lakh shares of Paytm were traded so far in the intraday trad on NSE while over 3.42 lakh shares exchanged hands on the BSE, data from the respective stock exchange showed.

The country’s largest initial public offering (IPO) worth a whopping Rs 18,300 crore was subscribed 1.89 times during its offer period from November 8-10, 2021.

It comprised a fresh issue of equity shares worth Rs 8,300 crore and an offer for sale (OFS) worth Rs 10,000 crore by existing shareholders including its founder Vijay Shekhar Sharma along with Ant Financials, Alibaba, Elevation Capital, and SAIF III Mauritius Company, Saif Partners.

The Paytm IPO had surpassed the 2010 offering of state-run Coal India that raised over Rs 15,000 crore.

Reacting to the listing, Ravi Singh, VP and Head of Research at Share India Securities, said, “We advice the investors after looking the overall valuations and earlier losses of Paytm, to book their positions and wait for Rs 1,700-1,600 levels for fresh investment. Retail investors may remain cautious as the overall market is in the profit booking zone pushing maximum stocks in downside territory. Paytm’s future growth is a key to watch for long-term investors.”

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