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Paytm shares go past 21,000 in grey market

Paytm shareholders include Alibaba's Ant Group (29.71%), Softbank Vision Fund (19.63%), Saif Partners (18.56%), Vijay Shekhar Sharma (14.67%). (Photo: Bloomberg)Premium
Paytm shareholders include Alibaba's Ant Group (29.71%), Softbank Vision Fund (19.63%), Saif Partners (18.56%), Vijay Shekhar Sharma (14.67%). (Photo: Bloomberg)

  • The digital payments and financial services firm has received an in-principle approval from its board to raise around Rs22,000 crore through an IPO during October-December. It is looking at an enterprise value of over 2 lakh crore

NEW DELHI: Since the announcement of its initial public offering (IPO), the Paytm stock has been in great demand in the grey market. Over the past four days, the stock price has risen to Rs21,000 from Rs11,500. Investors remain willing to pay a premium on current prices, but no one is selling now.

"Last week, we sold Paytm stocks to investors between Rs11,000 and Rs12,000. The last trade we did in these shares was two days back at Rs21,000. Since then, there are no stocks available for purchase," said Manish Mittal, director, Mittal Portfolios, a company that deals in unlisted and delisted securities.

According to Mittal, by some investors' estimates, the stock is attractive at Rs21,000 a piece, and they expect to make money in the IPO.

Grey market is attributed to channels where shares of a company are bought and sold outside the official trading channels.

The digital payments and financial services firm has received an in-principle approval from the company's board to raise around Rs22,000 crore through an IPO during October-December. The company is looking at an enterprise value of over 2 lakh crore.

Paytm shareholders include Alibaba's Ant Group (29.71%), Softbank Vision Fund (19.63%), Saif Partners (18.56%), Vijay Shekhar Sharma (14.67%).

Stocks available in the grey market are sourced from different places, with employee stock options plan a primary one. Once employees have the stock in their demat account, they sell it if they get a better price from another investor than what the company is offering in the buyback.

Most investors who buy stocks of unlisted companies expect to make handsome returns when the company goes for an IPO. Yet, some want to hold profitable unlisted companies to be part of their growth stories.

Among shares that Mittal deals in, of late, there is a strong demand for companies like HDB Financial Services Ltd and Studds Accessories Ltd of late.

(Do you have personal finance queries? Send them to mintmoney@livemint.com and get them answered by industry experts)

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