As Much-Anticipated IPO Nears Paytm Grey Market Shares Trade At INR 2,850

The share price of IPO-bound Paytm in the grey market has witnessed a minor correction over the past week and it is currently in the range of INR 2,850-2,860 per share.

Last week, it reached as high as INR 3,050 per share, market analysts said. The shares have witnessed around a 3-fold jump since the INR 1,000 per share levels in January.

The surge had come post the bumper listing of foodtech major Zomato and the massive interest shown by retail investors towards tech-based new age companies.

The Ant Group-backed payments major expects a valuation of $25 Bn – $30 Bn. Manan Doshi, co-founder of Unlisted Arena, which deals in pre-IPO and unlisted shares told Inc42 that at if valuation comes below $25 Bn the shares may get listed in the range of Rs 2,400-2,600 and in case of a bullish scenario, with valuation of $30 Bn or more it may get listed in the range of INR 3,200-3,000 per share.

“Paytm shares have risen significantly of late, and are currently witnessing a correction,” Doshi said.

Market analysts expect the IPO of One 97 Communications, the parent company of Paytm to hit the market around Diwali. As per the website of the Securities and Exchange Board of India (SEBI), the processing status of the draft offer is under process.

Paytm’s draft IPO prospectus showed that the weighted average share price of ESOPs during the year ended March 31, 2021 was INR 10,706.93 per share.

It recently told its employees that the last day to convert their ESOPs (Employee Stock Option Plan) into shares is 22 September for KMPs (Key Management Personnel) and 27 September for “Designated Persons”.

Founded in 2009 by Vijay Sharma, One97 Communications, filed its draft red herring prospectus (DRHP) for public listing earlier this year. With the IPO, the unicorn aims to raise INR 16,600 Cr. Its offer comprises a fresh issue of INR 8,300 Cr and an offer for sale (OFS) worth INR 8,300 Cr.

Share price of another IPO-bound payments service provider MobiKwik also has declined in the grey market.

Currently, its shares in the grey market are trading around INR 1,100 per share, down from INR 1,150-1,170 last week. The online payments company had filed its DRHP in July with a target to raise INR 1,900 Cr through IPO.

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