India’s digital payments pioneer Paytm’s disappointing IPO is dragging its rival One MobiKwik Systems Ltd down in the unlisted market, in one of the strongest signs that demand has slowed until a red-hot equity rally recently .
MobiKwik shares are being offered at as low as Rs 800 ($11) in the so-called gray market, according to investment platforms that allow trading in unlisted firms, which is about 40% lower than a few weeks ago. Paytm has lost almost 30% since its November 18 debut, even after a 10% rise on Tuesday.
Krishna Raghavan, Deputy CEO, Unlistedkart LLP said, “MobiKwik shares were under pressure since Paytm IPO opened, but have been heavily discounted since its listing.”
Hitesh Dhankani, founder of UnlistedDAC, another such platform, has predicted that MobiKwik could fall another 20% amid growing concerns over valuations of fintech firms.
Gurgaon-based MobiKwik plans to raise Rs 19 billion through an initial public offering, which was expected this year. The Economic Times reported on Tuesday that it may delay its IPO by a few months due to lackluster investor demand and a 30%-40% drop in valuations.
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