The disappointing IPO of India’s digital funds pioneer Paytm is dragging down its rival One MobiKwik Methods Ltd. within the unlisted market, one of many strongest indicators that demand is being dented in what was till not too long ago a red-hot fairness rally.
MobiKwik shares are being provided at as little as 800 rupees ($11) within the so-called gray market, down about 40% from a couple of weeks in the past, in response to funding platforms that enable buying and selling in unlisted companies. Paytm has misplaced about 30% since its Nov. 18 debut, even after a ten% surge Tuesday.
“MobiKwik’s shares had been beneath stress since Paytm’s IPO opened however there’s a sharp low cost since its itemizing,” mentioned Krishna Raghavan, deputy CEO at Unlistedkart LLP, a analysis and market-making platform for buying and selling in unlisted shares.
Hitesh Dhankani, founding father of one other such platform UnlistedDaq predicts MobiKwik might drop one other 20% amid rising considerations over fintech companies’ valuations.
Gurgaon-based MobiKwik plans to boost 19 billion rupees by means of an preliminary public providing, which was anticipated this yr. It might delay its IPO by a couple of months attributable to lack of demand from traders and a 30%-40% drop in valuation, the Financial Instances reported Tuesday, citing sources it didn’t establish.
Supply: Live Mint