Paytm Listing: Shares of Paytm’s parent company One97 Communications continued to decline even after a weak listing on Thursday. Its shares were listed on the stock exchange about 9% below its IPO price and then fell by about 27% to close at Rs 1,564. The company’s IPO got 1.9 times subscription, which many analysts said was less than expected.
Biggest IPO bad listing of
Paytm’s IPO is the biggest IPO ever in Indian history. Although its listing is one of the worst listings of this year. Company’s founder Vijay Shekhar Sharma said that the share price does not reflect the company’s business model properly and it will take some time for people to understand it. He also said that the combined model of finance and technology company is still very new.
This is the opinion of experts on the future of the company and the listing after the IPO as well as the falling prices.
Macquarie Capital Securities believes that as a payments bank, they cannot give loans. But if they get a small finance bank license, then they can definitely do so. We believe that the chances of them getting the license of Small Finance Bank are slim. Obviously it all depends on the way RBI sees them. But this is our opinion about Paytm for the time being.
White Oak Capital Management Said that Paytm has now become a verb instead of a noun. People take its name in conversation and say Paytm Karo, which means pay online. Concerns about this sector are justified since the advent of UPI technology, as it has reduced the value of mobile wallets.
However, on the other hand, it should also be seen that many new players like PhonePe and GooglePay based on UPI have emerged as leaders in the market. Paytm can be said to be the pioneer of the digital payment industry, but still it has faced new challenges due to UPI-based payments. Also, with the rise in the trend of UPI payments, apps like Paytm have now become the most used apps on our mobiles. Not much money comes from them, but user engagement increases. This user engagement can be monetized in other ways.
Paytm has launched many services including travel and booking facility. In such a situation, Paytm is engaged in monetization. In the coming days, if Paytm is successful in selling a good number of products related to financial services. Also, if it can increase its banking, insurance and investment products, then it can turn profitable in the long run.
Swastika Investmart It argues that short-term investors can stay in it as we may see some return in it in the near term. But from a long-term perspective, we don’t expect any upside. In such a situation, long-term investors can exit from it and wait to buy on the downside. On the other hand, new investors are advised to look for other similar companies which can outperform Paytm. It has also been said that the company demanded higher valuation on the basis of its brand. Some improvement can be seen in this in the short-term.
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