Mumbai: shares of One97 Communications Ltd., the parent arm of the fintech major, is listed at a steep discount to its IPO price of Rs 2,150, bucking the trend of stellar public market debuts by new-age internet companies in India.

At 10:30 am, Paytm stock was trading 20.81% lower than its issue price at Rs 1,702.50, taking the fintech firm’s market capitalization to Rs 110,316.73 crore. In comparison, shares of Zomato and Nykaa parent FSN E-commerce Ventures jumped to achieve a market cap of Rs 1 lakh crore in the first few hours of trading, while that of PB Fintech stood at over Rs 50,000 crore at the end of the first day. was evaluated. ,

Sharma said during the listing event at BSE in Mumbai on Thursday, “I hope the Paytm story can inspire even those entrepreneurs who don’t have background but I hope it inspires them to do so.” Huh.” “I believe India is on course to come up with stories like this and many more stories like this one.”

Paytm Group CFO Madhur Deora said his company has done what “many people said it couldn’t be done”. “We have the most blue-chip investors in the world and one million retail investors with us,” he said.

investment bank macquarie
Starts coverage of Paytm stock on “underperform” and set a price target of Rs 1,200, 40% below the IPO price.

In a report ahead of the company’s listing, Macquarie says about Paytm, “Too many fingers are too many.” “We believe that Paytm’s business model lacks focus and direction. Let’s start with a TP of Rs 1,200, which means 40%+ downside.”

“Competition and regulation will, in our view, undermine unit economics and/or growth prospects in the medium term,” the Macquarie report said. “Unless Paytm does not lend, it cannot make significant money by simply being a distributor. So we question its ability to scale with profitability.”

Discussions in the gray market, by no means an official metric, indicated a tacit list.

Paytm shared on Wednesday
Change hands in gray market Above Rs.20-25 only at a premium of Rs.
Final issue price of Rs 2,150, As per IPO Watch, on Tuesday, they were trading at a premium of only Rs 30, which was only 1.4% higher than the last issue price.

The stock was trading at Rs 2,300 per share in the gray market on November 7, which was Rs 150 or 7% higher than the issue price. It fell to Rs 80 on the first day of the IPO and was at Rs 40 till the issue ended on November 10.

Dealers tracking the gray market said exorbitant pricing, poor financials and weak growth prospects are the main reasons for poor listings.

Unlisted Arena cofounder Abhay Doshi said Paytm was likely to flop on debut despite being promoted as India’s biggest IPO ever. “The valuation of the issue was costly. Also, the company has not shown any significant performance in financial performance and is losing market share,” he added.

November 8-10 Paytm IPO-
Billed as India’s biggestIt has fresh stock of Rs 8,300 crore, while existing shareholders and promoters have sold shares worth Rs 10,000 crore.

the issue was
subscribed only 18% On the first day of bidding, the company received bids for 88.21 lakh out of 4.83 crore equity shares on offer. on day 2, it
48% was subscribed2.34 crore bids have been received. India’s biggest IPO was finally
fully subscribed On the third day after qualified institutional buyers have stepped in.

Apoorva Mittal and Digvijay Mishra of ETtech contributed to this story.