Paytm disappoints

Paytm got listed today and it was a disappointment to all. As against the IPO price of Rs.2150, the stock got listed on the BSE and at Rs.1955 and on the NSE at Rs.1950. From there, the stock also slipped down to Rs.1602, down 25% over the IPO price.

The IPO saw a tepid response from investors as it was subscribed 1.89 times, with QIBs portion subscribing 2.79 times, retail investors by 1.66 times and HNIs by just 24%. The HNIs giving this IPO a very tepid response has resulted in this poor listing, clearly showing us who the movers and shakers of the primary market really are.

This was the largest IPO ever, raising Rs 18,300 crore.

Our verdict in the IPO Analysis was, “Intense competition leading to market share loss coupled with company’s own ‘guidance’ to continue with losses in the foreseeable future makes this IPO risky and hence we do not recommend it.”