Paytm shares close 27% lower from issue price on listing day
- Paytm IPO was launched on November 1 and concluded on November 3 with a price band of ₹2,080-2,150 per share
Shares of digital payments and financial services firm Paytm made its much anticipated stock market debut on Thursday. The stock listed at ₹1,950 per share on the NSE, a 9% discount as compared to its IPO issue price of ₹2,150 apiece. On BSE, Paytm shares started trading at ₹1,955 per share with market capitalization above ₹1 lakh crore. The stock closed over 27% lower at ₹1,564 per share from its issue price on its first day.
The three-day initial public offering (IPO) of Paytm's parent One97 Communications was launched on November 1 that concluded on November 3 with a price band of ₹2,080-2,150 per share.
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.
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. The OFS consisted of the sale of shares worth up to ₹402.65 crore by founder Vijay Shekhar Sharma.
Engineering graduate Vijay Shekhar Sharma founded Paytm in 2010 as a platform for mobile recharges. 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.
Paytm's success has turned Sharma into a billionaire with a net worth of $2.4 billion according to Forbes. Its IPO has also minted hundreds of new millionaires in the country.
Meanwhile, brokerage firm Macquarie Research has initiated an underperform rating on Paytm owner One97 Communications ahead of its listing on Thursday, saying its business model lacks focus and direction.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
- Top Gainers
- Top Losers
- 52 Week High