According to people familiar with the matter, several biggest investors added their bets in the Indian fintech giant after shares fell 41% in Paytm’s record-breaking initial public offering.
BlackRock Inc. And Canada Pension Planning Investment Boards were among the so-called anchor investor Who bought more in IPO paytm share On Tuesday and Wednesday, people asked not to be identified while discussing private information.
The stock climbed 7% to Rs 1,875 on Thursday for the third day in early trade in Mumbai. This is still a long way from its issue price of Rs 2,150. The size of this week’s buying by anchor investors was not immediately known. Representatives for BlackRock and CPPIB declined to comment.
Paytm’s early decline was ranked as the worst start by a major technology company since the dot-com bubble era of the late 1990s. Any signs that influential money managers like BlackRock are doubling down on the company could help ease concerns about the stability of the Indian stock-market boom, which attracted $17 billion of foreign inflows over the past year. and has created a business frenzy among local individual investors.
While Paytm shareholders include big-name investors such as Warren Buffett’s Berkshire Hathaway Inc. and Masayoshi Son’s SoftBank Group Corp., some analysts have questioned the company’s valuation and path to profitability. Macquarie Capital Securities (India) Limited price target is Rs 1,200, which is about 32% lower than the stock’s close on Wednesday.
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Paytm Chief Executive Officer Vijay Shekhar Sharma, who has made no secret of his desire to surpass the longstanding IPO record set by Coal India Ltd in 2010 for his company, said last week that the stock’s initial drop in “value”. There was no indicator of “our company.”
“We are in this for the long haul,” Sharma said in an interview. “We’ll put our heads down and execute.”
$2.5 billion offer by Paytm, formally known as One97 Communications Ltd., to Morgan Stanley, Goldman Sachs Group Inc., Axis Capital, ICICI Securities, JPMorgan Chase & Company, Citigroup Inc. and HDFC Bank Ltd. arranged by the banks.
With the help of Sila Brush and Nupur Acharya