Paytm's tepid listing debut on BSE, NSE: Here’s what brokerages say
Market watchers advised new investors to look for better opportunities than Paytm. Here’s what they have to say
- Nov 18, 2021,
- Updated Nov 18, 2021 1:35 PM IST
Digital payment firm Paytm disappointed investors with its tepid listing debut on Dalal Street on Thursday. The scrip listed at discount of 9.30 per cent at Rs 1,950 on the NSE against the issue price of Rs 2,150. On the other hand, it kicked off the day at Rs 1,955 on the BSE.
Earlier, the public offer, which opened for subscription on November 8, got subscribed 1.89 times on the final day of the offer on November 10. The company had fixed a price band of Rs 2,080-2150. Market watchers advised new investors to look for better opportunities than Paytm. Here’s what they have to say.
Paytm witnessed a weak listing as the company is overvalued at a price-to-sales (P/S) of 26 times as compared to global peers at 0.3 -0.5 times P/S. Besides, 75 per cent of promoters are from other countries and are selling stakes by the offer for sale worth Rs 10,000 crore which is more than 50 per cent of IPO value. Going ahead, RBI may bring policies for fintech in BNPL space and monetisation of UPI could trigger some game-changer that is free of cost currently.
Digital payment firm Paytm disappointed investors with its tepid listing debut on Dalal Street on Thursday. The scrip listed at discount of 9.30 per cent at Rs 1,950 on the NSE against the issue price of Rs 2,150. On the other hand, it kicked off the day at Rs 1,955 on the BSE.
Earlier, the public offer, which opened for subscription on November 8, got subscribed 1.89 times on the final day of the offer on November 10. The company had fixed a price band of Rs 2,080-2150. Market watchers advised new investors to look for better opportunities than Paytm. Here’s what they have to say.
Paytm witnessed a weak listing as the company is overvalued at a price-to-sales (P/S) of 26 times as compared to global peers at 0.3 -0.5 times P/S. Besides, 75 per cent of promoters are from other countries and are selling stakes by the offer for sale worth Rs 10,000 crore which is more than 50 per cent of IPO value. Going ahead, RBI may bring policies for fintech in BNPL space and monetisation of UPI could trigger some game-changer that is free of cost currently.