Since the announcement of Paytm IPO allotment status, every investor’s attention has been set on the share listing date i.e. 18th November 2021. Some market observers and bidders, however, kept their eye on the grey market as well. Read more to know whether you should buy the Paytm Stock or not.
The prices of Paytm’s share were a matter of concern for some bidders since the grey market premium (GMP) indicated that listing gains from the public issue could be expected.
What is GMP?
According to the market observes, the GMP of a public issue is an unofficial signal with regards to the share listing of the company.
Paytm IPO GMP
According to market observers, the IPO of Paytm’s GMP was in the negative zone since the shares of the fintech companies were available at a discounted price of Rs 30. The IPO GMP of Paytm has been nosediving for the last one week. From Rs 150 levels, it came down straight to minus Rs 30 levels in this period.
On Tuesday, Paytm’s IPO grey market price was recorded Zero. Market observers added that Paytm’s IPO in the grey market is a matter of concern. It is signaling that the shares of Paytm may be listed at discounted price.
However, the experts also believe that the heavy sell-off in the stock market on Monday might be a reason for the slipping share prices of Paytm in the negative zone.
Paytm Stock Details
The subscription period of the initial public offering of Paytm was opened on November 8, and the last date was set at November 10. According to the details on the Chhitorgarh website, its IPO was subscribed at 1.89 times overall, and at the qualified institutional buyer (QIB), the IPO was subscribed at 2.97 times, and at the non-institutional investors (NII) it was subscribed at 0.24 times, and 1.66 times at Retail Individual Investor (RII) category.
The face value of Paytm IPO is Rs 1 per equity share. The IPO of Paytm price has been fixed at Rs 2,080 to Rs 2,150 per equity share. The IPO has a market lot of 6 shares, and a minimum order quantity of 6 shares. The size of the initial offering has an issue size of Rs 18,300 crore, out of the total, Rs 8,300 crore is the fresh issue. Paytm has decided to offer a sale of Rs 10,000 crore.
According to a PTI report, the digital fintech company Paytm was looking at a valuation of Rs 1.47-1.78 lakh crore. Aswath Damodaram, US-based valuation expert, and a professor specializing in finance at the Stern School of Business at New York University had valued the unlisted shares of the firm at Rs 2,950 apiece, the report added.