Paytm Makes Weak Stock Market Debut, Stock Falls Over 9% From IPO Price


Shares of One 97 Communications, the parent of digital payment firm Paytm, made a weak stock market debut on Thursday. The stock opened for trading at Rs 1,950 on the NSE, marking a decline of 9.3 per cent or Rs 200 from its issue price of Rs 2,150. Paytm shares extended losses after market opening as the stock fell as much as 17.36 per cent, from issue price, to hit an intraday low of Rs 1,776.65.

Paytm’s Rs 18,300 crore IPO, which was the country’s largest, was subscribed 1.89 times last week. On the BSE, Paytm stock opened for trading at Rs 1,955.

Analysts pointed at Paytm’s expensive valuations as the reason behind the fall in stock price on its first trading session.

Paytm’s IPO consists of a fresh issue of Rs 8,300 crore and an offer for sale (OFS) by existing shareholders worth Rs 10,000 crore. Paytm allocated shares worth Rs 8,235 crore to more than 100 institutional investors, including the government of Singapore, ahead of the country’s largest stock market listing.

Paytm garnered interest from 122 institutional investors who bought more than 3.83 crore shares for Rs 2,150 apiece, according to a regulatory document dated November 3.

,



Source link

Leave a Reply

%d bloggers like this: