Paytm IPO Subscribed by 2x Only
Some of the IPOs in the year 2020 did pretty well and because of that, I started tracking IPO this year and Paytm IPO was the most awaited IPO of the year. Paytm is a leading fintech company in India and its user base is growing rapidly. This IPO was announced last year that the company is planning to bring its IPO and it will be the biggest one. Finally, the company launched its IPO on 8th Nov and it closed on 10th November 2021. Its value was 18300 cr INR and this is the second biggest IPO in history after Coal India.
IPO is the same as ICO where we can invest in a project or company in its early phase and if the market accepts is then we can see the rapid growth in price which can help us earn good money ins a short time. IPO usually stays open for about 3-4 days and the stock gets listed in the stock exchange within a week or two which means its a kind of opportunity to make easy money with less risk. Most of the IPOs get a higher listing price and that's where investors make a lot of money in small time. Some investors prefer to invest in IPO because they need not wait for long as they sell their holding immediately after listing. Less risk does not mean that its risk-free and like the risk of another investment is also involved here and if stock is listed at a lesser price then we have to hold it for long.
The IPO for the tech-enabled payments solutions pioneer in India is set to be the largest such offering in India, ahead of Coal India’s Rs 15,200-crore in 2010.
In fact, is the first-ever tech start-up that has raised such a big IPO in the country but the subscription is not as per the expectation. Usually, companies get oversubscribed by 100x or 200x easily, and then it also creates a situation when there are more buyers after listing. Paytm IPO is closed with just 2x subscription which is too less and its hard to say if this is a successful IPO as the response is surely not that company was expanding. The reason behind this low response could be because of higher share value which is INR 2150 and this is surely expensive as most of the IPO companies don't keep this much of price in IPO.
Although I wanted to join the IPO I canceled my plan, at the last, moment because of low response in the market and I don't think that I a too good in the stock market so I believe crypto is better for me as of now. I did buy some shares of yes bank and my experince has not been good so I don't want to block my money not such type of investment. There is a lot o manipulation in such companies and its not like crypto where we can many opportunities.
I am still tracking some other companies but I am not too excited after this IPO as investing without proper research is not a good idea and that is what I did. Hope there will be better subscriptions in future IPO in India which can be profitable and things will be better as compared to Paytm IPO>.
Thank you so much
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