Paytm, the biggest payment firm that we use to make transactions online recently made a debut at the stock market by listing its stock at Rs 1,950 by providing a discount of 9.30%.
This is by far the biggest initial public offering (IPO) in the country.
On NSE, its share opened at the price of Rs 1950. The market capping of the firm rose to Rs1.15 lakh crore because of the total 43.08 lakh shares of the company.
The company opened its IPO for subscription from the 8th of November to the 10th of November.
Rs 2080- Rs2150 per share was the fixed price band of the IPO. On BSE, the share price was fixed at Rs 1955 as its debut price. Total 1.59 lakh shares amounting to Rs 29.35 crore was the turnover at the market. The market value of the firm also rose to Rs 1.19 lakh crore.
The subscription taken of the company was made 1.89 times on the last day of the bid. The offer price of Rs 4.83 crore shares received the bid of Rs 9.13 crore equity, a whooping double the amount of the share.
There were different portions allocated to retail as well as none institutional investors For retail investors, the subscription was fixed at 1.66 times and for the none institutional investors, it was fixed at 24%. The qualified investors submitted the bid at 2.79%.
The company was able to collect Rs 18,300 crore from the IPO.
Conclusion
Paytm’s long-awaited debut had devolved into one of the worst first days for a major tech IPO since the dot-com bubble. Even Paytm sceptics were stunned by the stock’s 27 per cent drop, putting doubt on the stock’s record-breaking run and leaving Sharma — and his underwriters — facing harsh questions about what went wrong with the $2.5 billion fundraisings.
The short answer is that Sharma’s great plan to make Paytm’s IPO the largest ever in the country flopped. The entrepreneur had made no secret of his desire for his company’s IPO to break Coal India Ltd.’s long-standing IPO record set in 2010. Indeed, a firm that handles payments in bits, eclipsing the state-run mining behemoth, would be symbolic.
Paytm, on the other hand, now appears to be an example of spectacular overreach. With the help of major banks like Morgan Stanley and Goldman Sachs Group Inc., the corporation pushed the price and size of the stock offering to the limit. Retail investors, as well as global heavyweights like BlackRock Inc. and the Canada Pension Plan Investment Board, have suffered significant losses as a result of the sale.
Also Read: Time to adopt a coordinated approach for decarbonization of the economy
