Bright listing of Paytm closed on Mobikwik in the unlisted market

MobiKwik was trading at the peak of the stock 1,350 per share ahead of the opening of Paytm’s initial public offering (IPO) earlier this month, one of the two traders said on condition of anonymity. Poor response to Paytm’s IPO and even more disastrous listing drove MobiKwik shares to the downside. The trader said the shares are trading at Rs 900, which is about 33% lower than its peak.

“As per company policy, we do not respond to any market speculation. MobiKwik has received regulatory approval for its IPO and will be made public at an appropriate time.”

Shares of One97 Communications Ltd, which runs Paytm, fell 27% in its market debut on Thursday. Since then the shares have declined 36.37 percent from their IPO price. 2,150 per. the sharp sell-off is over 51,194 crore in investors’ assets from IPO valuation of 1.39 trillion.

Manan Doshi, co-founder of UnlistedArena.com, said, “The discouraging response to the fintech IPOs of Paytm and Fino Payments Bank accelerated the decline, which was accelerated by the disastrous listing of Paytm.”

of paytm The biggest ever IPO of Rs 18,300 crore in India was subscribed just 1.89 times, while the public offer of Fino Payments Bank was subscribed twice. Fino shares are down 31% from their IPO price 577 per.

One MobiKwik Systems Ltd filed its draft paper in July and received the approval of the Securities and Exchange Board of India in October. Its IPO will involve the sale of new shares worth 1,500 crore and an offer for sale of stock value 400 crores by its founders and shareholders.

MobiKwik generates revenue mostly from its consumer payments business, payment gateway services, and pay now later financial products from its purchases. All these sections have been badly affected by the pandemic. Company’s revenue down 19% 288 crore in FY21 from 357 crore in the previous year. net loss widened to 111 crores 100 crores during this period.

Analysts say sentiment is turning sour after Paytm’s weak listing in the primary market and could impact the upcoming share sale by startups. “We can see a broader impact in the primary markets to some extent. Three IPOs, Latent View Analytics, Tarson Products and Go Fashion Look cost more. However, due to the comparatively small size issues they have got a decent subscription from all the segments, which makes it a favorable framework for listings to pop when the market stabilizes,” Manan Doshi said.

The gray market premium for Latent View Analytics has fallen 330. from the high 380, while go fashion’s, fell 450. From For 575 and Tarson products from 175 255 per share.

Aditya Kondavar, COO, JST Investments, said, “This may quell the enthusiasm that the IPO markets were seeing recently in terms of listings and heavy subscriptions.”