In what is expected to be India’s biggest public issue, Paytm’s ₹18,300 crore initial public offering by parent One97 Communications opened for subscription on Monday.
The public issue comprises issuance of fresh equity shares worth ₹8,300 crore and Offer for Sale by existing shareholders to the tune of ₹10,000 crore.
As per market observers, Paytm shares premium has slipped in the grey market, and commanding a GMP of around ₹45.
“While valuations may appear to be expensive, Paytm has become synonymous with digital payments through mobile and is the market leader in the mobile payment space.
Keeping in view of overall business model, we advice investors to subscribe the issue,” said Ravi Singhal, Vice Chairman, GCL Securities.
As of June 30, 2021, it offers payment services, commerce & cloud services, and financial services to 33.7 crore consumers & over 2.2 crore merchants.
Analysts at Choice Broking have recommended to subscribe for long term on the back of large market opportunities, product and technology DNA, leadership and culture.