Digital payments company Paytm will makes its stock market debut on Thursday when its shares get listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Among the most trending initial public offerings (IPOs), One97 Communications – which owns the Paym brand – saw a lukewarm response during the three-day subscription window.
Livemint reported that the same could be visible in listing of shares too today.
Abhay Doshi, founder at UnlistedArena.com, told Livemint that Paytm IPO got a very tepid response from investors due to expensive pricing and losses incurred. “I am expecting a flat listing and won’t be surprised if the issue opens in discount.”
The country’s biggest IPO was subscribed 1.89 times with institutional buyers including FIIs flooding the share sale with offers seeking 2.79 times the number of shares reserved for them. The company saw participation from blue chip investors like Blackrock, Canada Pension Plan Investment Board, GIC, ADIA, APG, City of New York, Texas Teachers Retirement, NPS Japan, University of Texas, NTUC Pension out of Singapore, University of Cambridge etc.
Based on the bid received for the IPO, the company will list an enterprise valuation of ₹1,49,428 crore or slightly over $20 billion at an exchange rate of 74.35.
Some of the IPOs, which came before Paytm, saw a higher subscription, especially on the final day of bidding. Coal India had closed at 15.28 times on the last day. The same trend was seen for Nykaa and PolicyBazaar.
Paytm IPO comprised a fresh issue of equity shares worth ₹8,300 crore and an offer for sale (OFS) of shares worth up to ₹10,000 crore.
Incorporated in 2000, One97 Communications is India’s leading digital ecosystem for consumers and merchants. It offers a range of services to the users – payment services and financial services.