Digital payments company Paytm has announced that it will bring initial public offer (IPO) worth USD 3 billion later this year.
Since the announcement of its initial public offering (IPO), the Paytm stock has been in great demand in the grey market.
Over the past four days, the stock price has risen to Rs21,000 from Rs11,500. Investors remain willing to pay a premium on current prices, but no one is selling now.
What is Grey Market?
Grey market is referred to channels where shares of a company are bought and sold outside the official trading channels.
Grey market are sourced from different places, which includes employee stock options a primary one.
Following the employees have the stock in their demat account, they sell it if they get a better price from another investor, rather than selling to firm offering in the buyback.
These markets are beyond the purview of the Securities and Exchange Board of India (SEBI).
Paytm shareholders
Paytm shareholders include Alibaba’s Ant Group (29.71 per cent), Softbank Vision Fund (19.63 per cent), Saif Partners (18.56 per cent), Vijay Shekhar Sharma (14.67 per cent).
Financial’s
The company had reported narrowing of loss by 40 per cent on year-on-year basis in the fiscal year 2019-20.
Comment from Mittal Portfolios
Manish Mittal, director “Last week, we sold Paytm stocks to investors between Rs11,000 and Rs12,000.
The last trade we did in these shares was two days back at Rs21,000. Since then, there are no stocks available for purchase.”
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