Leading online payments platform Paytm’s operator One97 Communications registered a weak debut on Dalal Street, listing at a discount of 9 per cent compared to the issue price after its Rs 18,300 crore initial public offering (IPO).
The stock opened at Rs 1,950 on the National Stock Exchange (NSE), while the listing price on the Bombay Stock Exchange (BSE) was Rs 1,955, marking a heavy discount over the issue price of Rs 2,150 per share.
Paytm shares were trading over 18 per cent lower on the BSE and NSE at 10:20 am at a heavy discount. This is in line with what some analysts had expected about the company’s listing, given the weak response to its IPO.
The grey market premium (GMP), which entered negative territory a day before the listing, also indicated that Paytm would register a weak debut on the stock market.
The weak listing means Paytm investors will not be able to leverage any listing gains, but some analysts remain optimistic about the future prospect of the digital payments firm, given its market position and expansion plans.
An India Today Infographic: The Paytm IPO
On the other hand, many analysts have expressed concern over the company’s future challenges and profitability.
Paytm’s Rs 18,300 crore IPO is the largest in the country’s history and the public issue was subscribed a total of 1.89 times.
Paytm’s parent firm, One97 Communications, was founded by Vijay Shekhar Sharma in 2000 and it has emerged as India’s leading digital payment service platform. While it began its journey as a value-added services provider, it now provides a wide range of financial services besides doubling up as an online mobile wallet and payments platform.