after the announcement of Paytm IPO Allotment StatusAll eyes are now on the date of share listing i.e. 18 November 2021. However, some market observers and bidders are also eyeing the gray market. According to market observers, Paytm share price is falling in the gray market, which has become a cause of concern for some bidders as the gray market premium (GMP) tells about the expected listing gains from the public issue.
Paytm IPO GMP
According to market observers, Paytm IPO GMP is in negative territory today as the fintech company’s shares are available at a discounted price. 30. He said Paytm IPO GMP has been plaguing the past one week and it has come down from this minus 150 level 30 levels in this period. The gray market price of Paytm’s IPO was zero yesterday. Market observers further said that the drying up of Paytm share price in the gray market is a matter of concern as it is indicating that Paytm shares may get listed at a discounted price. However, he said that heavy selling in the stock market on Monday could also be a reason for Paytm’s shares slipping into the negative zone today.
What does this GMP mean?
Market observers said the GMP of the public issue is an informal indication of the company’s stock listing. Since today Paytm IPO is GMP minus 30, it means gray market is expecting Paytm shares to be listed 2120 ( 2150 – 30) Against its price band from 2080 2150 per equity share.
Elaborating on the reasons for the crash in Paytm IPO GMP, market observers said the public issue received a good response from investors. Paytm IPO subscription numbers look faded. He further added that high valuations, huge issue size, sustained losses and challenging road to profitability are the factors that cautioned investors.
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