Nifty 17938.4 (-0.96%)
Sensex 60098.82 (-1.08%)
Nifty Bank 38041.35 (-0.44%)
Nifty IT 37281.7 (-2.13%)
Nifty Financial Services 18269.95 (-1.08%)
Adani Ports 744.20 (-2.46%)
Asian Paints 3280.40 (-2.77%)
Axis Bank 729.60 (0.61%)
B P C L 394.35 (-0.94%)
Bajaj Auto 3436.80 (1.05%)
Bajaj Finance 7571.80 (-2.22%)
Bajaj Finserv 18077.30 (-0.42%)
Bharti Airtel 703.70 (-1.49%)
Britannia Inds. 3575.65 (-1.28%)
Cipla 895.65 (-0.72%)
Coal India 163.90 (1.93%)
Divis Lab. 4481.50 (-1.01%)
Dr Reddys Labs 4684.95 (-0.18%)
Eicher Motors 2718.70 (-0.64%)
Grasim Inds 1806.50 (-2.47%)
H D F C 2620.25 (-1.59%)
HCL Technologies 1199.20 (-1.68%)
HDFC Bank 1518.45 (-0.71%)
HDFC Life Insur. 656.05 (-1.95%)
Hero Motocorp 2699.80 (0.26%)
Hind. Unilever 2309.90 (-2.52%)
Hindalco Inds. 504.80 (1.77%)
I O C L 125.10 (0.93%)
ICICI Bank 808.60 (-1.76%)
IndusInd Bank 893.25 (-0.71%)
Infosys 1867.05 (-2.80%)
ITC 220.35 (-0.18%)
JSW Steel 674.65 (-0.82%)
Kotak Mah. Bank 1905.65 (-1.88%)
Larsen & Toubro 2020.90 (-0.06%)
M & M 894.40 (0.25%)
Maruti Suzuki 8015.70 (1.27%)
Nestle India 18937.00 (-2.28%)
NTPC 134.80 (-0.15%)
O N G C 170.25 (3.91%)
Power Grid Corpn 204.65 (-0.24%)
Reliance Industr 2521.60 (-0.01%)
SBI Life Insuran 1248.10 (-1.41%)
Shree Cement 26402.25 (-2.77%)
St Bk of India 515.80 (1.78%)
Sun Pharma.Inds. 838.50 (-0.97%)
Tata Consumer 717.65 (-1.89%)
Tata Motors 520.85 (1.97%)
Tata Steel 1209.60 (1.23%)
TCS 3914.65 (-1.90%)
Tech Mahindra 1670.10 (0.56%)
Titan Company 2588.90 (-0.45%)
UltraTech Cem. 7434.40 (-1.61%)
UPL 813.25 (1.77%)
Wipro 621.15 (-1.92%)

Paytm gets Investments from Big Global Funds

Paytm gets Investments from Big Global Funds
News - Updates
by 5paisa Research Team 26/11/2021

The story of Paytm has been a story of extreme volatility in the first 5 days of trading. The stock lost close to 41% from its IPO price of Rs.2,150 to touch a low of Rs.1,271. However, from the lows of Monday, the stock gained around 40% over the next 3 days.

While the stock is still about 18-19% below its IPO price, there is a greater degree of reassurance from the fact that the stock has taken support and bounced back.

If you look at the delivery percentage, the delivery percentage was as high as 42% on the first day and 24% on the second day. However, by the third day the delivery percentage had dropped to 19% and further to 14% by the fifth day.

That only shows that short term trading activity was quite robust in Paytm. But the question is, how did this trading interest come about so suddenly in the Paytm counter.

The reason was concerted buying by some global fund giants. While the funds have not confirmed these details, it has been reported that Blackrock and the Canadian Pension Plan Investment Board (CPPIB) were heavily buying into the counter of Paytm at lower levels.

Both had participated in the Paytm issue as anchor investors and they obviously bought the stocks at lower level to average their price. Anchor investments have a lock-in of 1 month.

Blackrock is the largest and most influential asset manager in the world with assets under management of nearly $9.6 trillion. CPPIB has AUM of $550 billion but has been one of the most active long-only buyers in the Indian markets. 

The very fact that both the anchor investors with a formidable AUM size have been buying into Paytm at lower levels, adds to the confidence surrounding the stock.

When the stock had fallen, the promoter Vijay Sekhar Sharma had been largely unperturbed. He underlined that Paytm was in the digital business for the long haul and were not really intimidated by such price corrections. 

News of some of their biggest anchor investors adding to their positions in Paytm only adds to the interest levels in the stock.

Paytm has been the largest IPO in Indian history at Rs.18,300 crore. The success of the Paytm IPO is not only critical to the Digital India story but also to the sustained interest of global investors and potential anchor investors in Indian IPOs. 

This is more so in the case of digital IPOs. After all, while the FPIs have been consistent sellers in the secondary markets, it is the primary market that has offered an avenue for FPIs to infuse funds into India.

About the Author

Open Demat Account

Enter Mobile Number
Enter correct otp
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
-656.04 (-1.08%)
Nifty 50
-174.65 (-0.96%)
Nifty Bank
-168.95 (-0.44%)
Next Article

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number

Stocks Directory

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All 0-9