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Below is quote on Paytm listing review By Mr. Aayush Agrawal, Sr. Research Analyst - Merchant Banking, Swastika Investmart Ltd

The payment services of Paytm account for the majority of its income. Their attempts to broaden the service offerings and market reach may be challenging, which might have a negative impact on its income.

Also, it is a loss-making company with a loss of Rs. 4,230.9 cr in FY19 which was reduced to Rs. 1,701 cr in FY21. As India is buoyant on digitalization, we expect the company to get benefited from the same in the long run. Also, new acquisitions and strengthening of the PAYTM ecosystem will be beneficial for the company. Hence, we recommend only the aggressive investors with a long horizon to stay invested in the IPO.

The biggest IPO of the country got a slow response from the market getting subscribed only 1.89 times. The grey market premium of the company is around 2% between Rs. 40 – Rs. 50, which is the lowest compared to most of the recently listed IPO stocks. As a major portion of the issue is OFS, we expect the shares to list in a flat ambit of -5% to 5%.

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