Paytm shares are going to hit Dalal Street today as Paytm IPO is will be listed today at both NSE and BSE. As per stock market experts, the public issue received low response from investors and this may be seen in its listing too. They said that Paytm share price may have a ‘tepid’ debut today.
According to stock market experts, if the market opens in positive mood then there can be at par listing, however, in the case of negative market sentiments, the issue may open at discount as well.
Speaking on Paytm share price expected on its debut; Abhay Doshi, Founder at UnlistedArena.com said, “Paytm was the most trending IPO since they declared its IPO plans but as the issue floated for subscription it got a very tepid response from investors due to expensive pricing and losses incurred. The subscription figures indicate very low demand and this may be seen in its listing too. I am expecting a flat listing and won’t be surprised if the issue opens in discount.”
On Paytm IPO listing price that one can expect; Abhay Agarwal, Founder and Fund Manager at Piper Serica — a SEBI registered PMS said, “We are expecting a weak listing. Will not be surprised to see the stock trade below the issue price and stay there in the foreseeable future. While the company has a well-known brand name and its service is omnipresent, the IPO is quite aggressively priced, not leaving much on the table for investors. Unlike Zomato and Nykaa, Paytm is in a very competitive space which will reduce its ability to grow profitably for quite a long time. The IPO saw poor response from HNIs and we do not expect any aggressive buying to emerge even at a lower price.”
Expecting flat listing of Paytm shares; Ankur Saraswat, Research Analyst at Trustline securities said, “This IPO has not garnered street intention on account of its loss making business model, rich valuation, facing intense competition in the fintech environment and amid weak market and global sentiments, grey market premium (GMP) has dropped significantly to just ₹30 and listing would be flat around ₹2180 apiece.”
Divam Sharma, Co-founder at Green Portfolio said, “We expect a flattish to 10 per cent listing gains for Paytm on Thursday. The market sentiments are not robust; EV/Sales valuations are on the higher end.”
Aayush Agrawal, Sr. Research Analyst – Merchant Banking at Swastika Investmart Ltd said, “As major portion of the issue is OFS, we expect Paytm shares to list in a flat ambit with negative close at -5 per cent to -10 per cent.”
What Paytm IPO GMP signaling?
According to market observers, Paytm IPO grey market premium (GMP) today is ₹45, which is ₹75 up from its yesterday’s price of minus ₹30. Observers said that Paytm IPO GMP today at ₹45 indicates that grey market expects Paytm share listing around ₹2195 ( ₹2150 + ₹45), which is around 2 per cent higher from its price band of ₹2080 to ₹2150 per equity share.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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