Paytm’s unlisted share price is lukewarm despite interest from anchor investors

The IPO of One 97 Communications, the parent company of Paytm opens on Monday, November 8 in the price range of INR 2,085 to INR 2,150

It increased the size of the IPO offering to INR 18,300 Cr, compared to its initial offering of INR 16,600 Cr

Gray market premiums suggest its shares may be listed at a premium of INR 150-200 to the IPO price range

The highly anticipated Initial Public Offering (IPO) of One 97 Communications, the parent company of Paytm, opens Monday, November 8 in the price range of INR 2,085 to INR 2,150.

As the mega IPO approaching to raise a massive INR of 18,300 Cr, investors have become cautious and trading volumes have also become scarce on the gray market.

Unlisted shares are currently trading at a price of INR 2,300-2,575 per share, compared to around INR 2,650 – 2,700 INR last week.

Prices have fallen since the announcement of the price range (2,085 INR – 2,150 INR).

Traders believe valuation and profitability issues may keep investor interest subdued in the much-talked-about public offering.

“The large size of the IPO, concerns about profitability and valuations are the factors that can dampen investor enthusiasm,” Manan Doshi, co-founder, Unlisted Arena told Inc42.

Gray market premiums suggest its shares could be listed at a premium of INR 150-200 to the IPO’s price range, traders said.

Sandeep Ginodia, CEO of Altius Investech, said trading volumes were largely weak in the middle of the holiday season and the weekend also played its part in Saturday’s lukewarm trading volumes.

Shares of digital payments decacorn have risen significantly in recent months after Zomato’s exceptional listing and hit INR 3,600 per share.

The One 97 Communications Highly Anticipated IPO, which runs digital payments giant Paytm, will open on November 8 and close on November 10.

The offer includes a new issue of shares worth INR 8,300 and an offer to sell (OFS) of INR 10,000 Cr.

On Wednesday, Paytm raised 8,235 Cr INR ($ 1.1 billion) from anchor investors in India’s largest round anchor. The anchor tour has been oversubscribed 10 times.

Some of the major investors participating in this round include Blackrock, with an investment of INR 1,045 Cr, CPPIB (INR 938 Cr), Birla MF invested (INR 555 Cr) and GIC (INR 533 Cr)

Global Mutual Funds – Vanguard, Fidelity and Dedicated Emerging Markets Investors – Standard Life Aberdeen, UBS, RWC; and global tech and fintech funds like Sands Capital, Alkeon, Marshall Wace, Viking, Citadel also participated in the anchor round.

Delhi-based fintech company NCR plans to go public at a valuation of $ 19.5 billion to $ 20 billion. He was valued at $ 16 billion when he raised $ 1 billion from Ant Financials, SoftBank Vision Fund.

Founded by Sharma in 2000, Paytm started its journey as a value-added service provider. It has evolved over the years with different fintech solutions to become an online mobile payment company.

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