Paytm makes tepid market debut, stock lists at 9% discount to issue price

Share of digital payment firm Paytm made a tepid market debut today. The stock listed at Rs 1,950, a 9.30% discount to the issue price, marking debut of the country's biggest initial public offering (IPO) till date.

The share opened at Rs 1,950 on NSE. Total 43.08 lakh shares of the firm changed hands on NSE. Market cap of the firm rose to Rs 1.15 lakh crore.

The IPO was open for subscription from November 8 to November 10.

Price band of the IPO was fixed at Rs 2,080-Rs 2,150 per share. The share made its debut at Rs 1,955 on BSE. Total 1.59 lakh shares of the firm changed hands amounting to a turnover of Rs 29.35 crore on the BSE. Market cap of the firm rose to Rs 1.19 lakh crore.

The IPO of the Noida-based firm was subscribed 1.89 times on final day. The issue received bids for 9.13 crore equity shares against offer size of 4.83 crore shares.

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The portion allocated for retail investors was subscribed 1.66 times, while the reserved portion for non-institutional investors was subscribed 24 percent. Qualified institutional buyers submitted bids 2.79 times the portion allocated for them.

The company collected Rs 18,300 crore through the IPO. The issue size of the share sale was revised from Rs 16,600 crore.

Watch video: Unraveling the sluggish performance of Paytm IPO

The Paytm IPO surpassed Coal India (Rs 15,475-crore IPO) and Reliance Power (Rs 11,700 crore IPO) in terms of issue size. The IPO comprised a fresh issue of equity shares of the face value of Rs 1 each, aggregating to Rs 8,300 crore and the offer for sale by the existing shareholders, aggregating to Rs 10,000 crore.

Lot size of the IPO was a minimum of six shares for which one would have to spend Rs 12,900. A maximum of 15 lots comprising 90 shares could be applied for by spending Rs 1,93,500.

 Watch video: Tracking the journey of Paytm to Dalal Street

The firm would use the proceeds of share sale to strengthen its payment ecosystem and for new business initiatives and acquisitions.

On November 3, the firm raised Rs 8,235 crore (45% of the issue size) from anchor investors.

Top sovereign wealth funds and financial investors such as Singapore's GIC, Canada's CPPIB, BlackRock, Alkeon Capital, Abu Dhabi Investment Authority were among those who bought stake in the fintech major's parent One97 Communications' anchor slot.

JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank were the booking running lead managers to the issue. On October 22, Paytm had received market regulator Sebi's nod for the share sale.