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Paytm shares, in demand after IPO news, go past ₹21,000 in grey market: Report
Paytm - which faces competition from other digital payment companies like Google Pay and Walmart-owned PhonePe - had raised USD 1 billion (over ₹7,000 crore) in November 2019.
Digital payments company Paytm has announced that it will bring initial public offer (IPO) worth USD 3 billion later this year. The news has led to a rally in the company's shares, which have been in great demand.
According to Live Mint, Paytm's stock has risen from ₹11,500 to ₹21,000 in four days in the grey market. It spoke to Manish Mittal, the director of Mittal Portfolios, which deals in unlisted and delisted securities. He told Live Mint that there are no stocks available for purchase now.
Though the shares are commanding a premium in the grey market, where trading is done outside the official channels, some investors still expect to make money in the IPO, according to Mittal.
Last week, Paytm's board gave in-principle approval to raise USD 3 billion (around ₹22,000 crore) through the IPO during the October-December quarter this year. The company is looking at an enterprise value of over ₹2 lakh crore for the IPO.
Paytm shareholders include Alibaba's Ant Group (29.71 per cent), Softbank Vision Fund (19.63 per cent), Saif Partners (18.56 per cent), Vijay Shekhar Sharma (14.67 per cent).
The company had reported narrowing of loss by 40 per cent on year-on-year basis in the fiscal year 2019-20.
A number of young businesses in the country, including Policybazaar, Nykaa, Delhivery and MobiKwik, are also reportedly firming up plans to launch their IPOs.
In April, food delivery platform Zomato filed preliminary papers for an IPO with capital market regulator Sebi to raise USD 1.13 billion (approximately ₹8,250 crore).
Paytm - which faces competition from other digital payment companies like Google Pay and Walmart-owned PhonePe - had raised USD 1 billion (over ₹7,000 crore) in November 2019 from US-based asset management firm T Rowe Price and existing investors, including SoftBank and Alibaba. At that time, the company was valued at around USD 16 billion.
(With inputs from agencies)
