Why I Am Bullish on Paytm Share despite a flop IPO
Paytm was probably the most anticipated IPO for 2021. The fintech company that single-handedly helped us go through demonetization was getting listed. But things started to seem bad when the IPO got a poor-than-expected subscription. It did get subscribed completely, but IPOs are around the same time got more subscriptions than Paytm. But just like Vijay Shekhar Sharma, the CEO of Paytm, even I think that the Paytm model is not completely understood. What went wrong with Paytm IPO? Everything looked good, but just a few days before listing news started floating that the GMP of Paytm or the grey market price of Paytm had erased its premium and it was trading only a few rupees above its IPO price. On the day of listing, Macquire, a research-based company gave a target of Rs. 1200. Most people, who got their first-ever IPO allotment were now feeling a little uneasiness. And when Paytm was finally listed at around Rs. 1,900, it sharply fell to around Rs. 1600 within a few minutes! In the a...