- BlackRock Inc. and the Canada Pension Plan Investment Board were among the so-called anchor investors in the IPO who purchased additional Paytm shares on Tuesday and Wednesday.
- According to people everyday with the matter, several of the largest investors in Paytm’s record-breaking initial public offering increased their stakes in the Indian fintech giant after shares fell by as much as 41%.
On Thursday, the stock rose for the third day in a row, rising as much as 7% to 1,875 rupees in early Mumbai trading. However, that’s still a long way from the issue price of 2,150 rupees. The size of this week’s anchor investor purchases could not be determined immediately. BlackRock and CPPIB representatives declined to comment.
Paytm’s initial drop was one of the worst for a major technology company since the late 1990s dot-com bubble. However, any indication that influential money managers, such as BlackRock, are doubling down on the company could help alleviate concerns about the sustainability of an Indian stock-market boom. That has attracted $17 billion in foreign inflows over the past year and fueled a trading frenzy among local individual investors.
While big-name investors such as Warren Buffett’s Berkshire Hathaway Inc. and Masayoshi Son’s SoftBank Group Corp. are among Paytm’s shareholders, some analysts have questioned the company’s valuation and path to profitability. Macquarie Capital Securities (India) Ltd. has a price target of 1,200 rupees, approximately 32% lower than the stock’s closing price on Wednesday.
Paytm CEO Vijay Shekhar Sharma, who has made no secret of his desire for his company to break the long-standing IPO record set by Coal India Ltd. in 2010, said last week that the stock’s early decline was “no indicator of our company’s value.”
“We are in it for the long haul,” Sharma explained in an interview. “We will put our heads down and get to work.”
Paytm, formerly known as One 97 Communications Ltd., raised $2.5 billion in a public offering arranged by Morgan Stanley, Goldman Sachs Group Inc., Axis Capital, ICICI Securities, JPMorgan Chase & Co., Citigroup Inc., and HDFC Bank Ltd.
Source: Business-standard News
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