Paytm trades with huge premium in unlisted market amid IPO buzz

Paytm IPO Worth ₹Rs 16,600 crore will make it India’s largest ever public issue, overtaking Coal India Limited ₹Public issue of Rs 15,000 crore in 2010. Paytm founder, MD and CEO Vijay Shekhar Sharma and Alibaba Group firms will reduce some of their stake in the proposed offer-for-sale.

Trading on Paytm, as per market observers ₹3300-3400 levels in the unlisted market, after the news of SEBI going ahead for its much-awaited IPO. Earlier it traded at approx. ₹3400-3500 levels.

“Paytm is trading at very significant levels, if the IPO issuance price falls below the current unlisted prices, we can see a correction in the unlisted prices of Paytm. Abhay Doshi, founder, UnlistedArena.com, said, “Volumes have come down in the unlisted market due to higher rates.”

The shares of Paytm are trading in the unlisted space for more than 3 years. “The unlisted market operates on its own, irrespective of the IPO price band. Recently, there were media reports that Paytm may eye the listing at a valuation of $25-30 billion. So, looking at that scenario, the unlisted market is considering the aforesaid valuation,” Doshi said.

The company plans to use part of IPO Goes forward to develop its existing business lines and acquire new merchants and customers. Paytm has over 20 million merchant partners in its network. Its users transact 1.4 billion monthly, as evidenced by figures in a recent company blog post. bloomberg.

For the year ended March 31, Paytm’s losses narrowed ₹1,701 crore. However, under the risk factors of its draft documents, Paytm said it has suffered losses for three consecutive years and is not expected to turn profitable in the near future.