With allotment being finalised on Monday, November 15, 2021, One97 Communications-backed Paytm shares is expected to list on November 18, 2021. Ahead of its market debut, the analyst estimated that the listing may happen ‘tepid to weak’ on the exchanges on Thursday.

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“As a major portion of the issue is OFS, we expect the shares to list in a flat ambit with a negative close at -5 to -10 per cent,” Aayush Agrawal, Senior Research Analyst - Merchant Banking, Swastika Investmart Ltd said in his Paytm IPO listing preview expectations.

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The biggest-ever initial public offer (IPO) in a decade was launched between 8-10 November 2021 with an issue price of Rs 18,600 crore and a price band set between Rs 2080-2150 per share. The issue was oversubscribed 1.89 times, received bids for 9.14 crore shares against 4.83 crore shares offered.

Stating that the IPO got a slow response from the market, the analyst mentions, “The grey market premium of the company was around 2 per cent between Rs 40 – Rs 50 when issue opened, which is the lowest compared to most of the recently listed IPO stocks.” 

Agrawal recommends only the aggressive investors with a long horizon to stay invested in the IPO, as its a loss-making company with a loss of Rs 1,701 crore in FY21 versus a loss Rs 4,230.9 crore in FY19.

As India is buoyant on digitalization, the senior research analyst at Swastika Investmart expects, the company to get benefited from the same in the long run. Besides, the new acquisitions and strengthening of the Paytm ecosystem will be beneficial for the company. 

The payment services of Paytm account for the majority of its income. Their attempts to broaden the service offerings and market reach may be challenging, which might have a negative impact on its income, the market analyst says ahead of its listing on November 18, 2021.