Paytm listing: Anil Singhvi says stocks may list below issue price of Rs 2150

The initial public offering (IPO) of Paytm, a digital payment solutions provider, is all set to be listed on exchanges today, November 18, 2021. The three-day share sale was oversubscribed 1.89 times and received bids for 9.14 crore shares against 4.83 crore shares offered.  

The company had fixed price band of Rs 2,080-2,150 per share for this issue, valuing the company at Rs 1.39 lakh crore at the upper end of the price band. Once listed, it will surpass Coal India IPO, which was the biggest IPO in the history of Indian primary market until Paytm decided to make stock market debut.  This was greater than previous miner Coal India's Rs 15,000 crore a decade back. 

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Talking about the listing, Zee Business Managing Editor Anil Singhvi on Thursday said that that Paytm stocks are likely to be listed below issue price of Rs 2,150. " Long term investors can buy if the shares fall between 8-15%," said Singhvi. 

Earlier, Ant Group-backed Paytm had closed India's largest anchor round, raising Rs 8,235 crore from 100 institutional traders, together with the federal government of Singapore, BlackRock International Funds, Canada Pension Plan Funding Board and Abu Dhabi Funding Authority. 

 Paytm IPO comprised a fresh issue of equity shares worth Rs 8,300 crore and an offer for sale (OFS) of shares worth up to Rs 10,000 crore. 

The OFS, or secondary share sale, consisted of the sale of shares worth up to Rs 402.65 crore by founder Vijay Shekhar Sharma. 

The company has set aside 75 per cent of the offer for QIBs, 15 per cent for non-institutional investors, and the remaining 10 per cent for retail investors.