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Paytm slumps as anchor lock-in period ends

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Capital Market
Last Updated : Dec 15 2021 | 9:50 AM IST

One 97 Communications (Paytm) slumped 11.41% to Rs 1,324.75 as the mandatory one-month lock-in of anchor investors expired for the stock today, 15 December 2021.

Anchor investors are marquee institutional investors who are allotted shares in a company ahead of its initial public offer (IPO).

Ahead of the IPO, Paytm on 7 November finalized allocation of 3,83,02,326 equity shares to anchor investors at Rs 2,150 per share, aggregating to Rs 8,235 crore.

The stock entered the bourses on Thursday, 18 November 2021. It was listed at Rs 1955, a discount of 9.07% compared with the initial public offer (IPO) price of Rs 2150. The counter has declined 38.3% from its IPO price. Meanwhile, Shares are down 32.45% from its 52-week high of Rs 1,961.05 posted on 18 November 2021.

The IPO of Paytm was subscribed 1.89 times. The issue opened for bidding on 8 November and it closed on 10 November. The price band of the IPO was fixed at Rs 2080 to Rs 2150 per share.

Paytm is one the largest payments platform in India based on the number of consumers, number of merchants, number of transactions and revenue ended March 2021. The company launched Paytm in 2009, as a mobile-first digital payments platform to enable cashless payments for customers giving them the power to make payments from their mobile phones. It started with bill payments and mobile top-ups as the first use cases, and Paytm Wallet as the first Paytm Payment Instrument.

The company reported consolidated net loss of Rs 473.50 crore in Q2 FY22, higher than net loss of Rs 436.70 crore in Q2 FY21. Net sales jumped 63.64% to Rs 1086.40 crore in Q2 FY22 over Q2 FY21. Pre-tax loss stood at Rs 471.50 crore in Q2 FY22, higher than pre-tax loss of Rs 428.30 crore in Q2 FY21. Revenue growth was driven by 52% growth in non-UPI payment volumes (GMV) and more than three times growth in financial services and other revenue.

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First Published: Dec 15 2021 | 9:36 AM IST

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