Paytm has a tepid debut on the NSE, listing at INR 1,950 at a 9.3% discount

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Paytm shares will hit Dalal Street today, as the company’s first public offering (IPO) will be listed on both the NSE and the BSE. According to stock market experts, the public offering had a modest response from investors, which is reflected in its listing. They predicted that Paytm’s stock price would make a ‘tepid’ start today.

According to stock market analysts, if the market opens in a positive mood, the issue may be listed at par; however, if the market opens in a bad attitude, the issue may be listed at a discount.

“Paytm was the most trending IPO since they declared its IPO plans but as the issue floated for a subscription it got a very tepid response from investors due to expensive pricing and losses incurred. The subscription figures indicate very low demand and this may be seen in its listing too. I am expecting a flat listing and won’t be surprised if the issue opens in discount.”

Abhay Doshi, Founder of UnlistedArena.com, commented on the predicted Paytm share price on its debut,

“We are expecting a weak listing. Will not be surprised to see the stock trade below the issue price and stay there in the foreseeable future. While the company has a well-known brand name and its service is omnipresent, the IPO is quite aggressively priced, not leaving much on the table for investors. Unlike Zomato and Nykaa, Paytm is in a very competitive space which will reduce its ability to grow profitably for quite a long time. The IPO saw a poor response from HNIs and we do not expect any aggressive buying to emerge even at a lower price.”

Abhay Agarwal stated,

Research Analyst at Trustline Securities said, “This IPO has not garnered street intention on account of its loss-making business model, rich valuation, facing intense competition in the fintech environment and amid weak market and global sentiments, grey market premium (GMP) has dropped significantly to just ₹30 and listing would be flat around ₹2180 apiece.”

Expecting flat listing of Paytm shares; Ankur Saraswat,

Divam Sharma, Co-founder at Green Portfolio said, “We expect a flattish to 10 percent listing gains for Paytm on Thursday. The market sentiments are not robust; EV/Sales valuations are on the higher end.”

Aayush Agrawal, Sr. Research Analyst – Merchant Banking at Swastika Investment Ltd said, “As a major portion of the issue is OFS, we expect Paytm shares to list in a flat ambit with a negative close at -5 percent to -10 percent.”

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