Money sinks in Paytm's IPO by taking crores of finance at high interest
MUMBAI: The primary market is booming with a historic boom ... Retail investors who are getting returns one after another in IPOs, high net worth investors and banks being lured by these huge returns, invest 15 to 18 per cent higher interest rates for IPOs in finance, funding-loans. Paytm-One3 Communications Ltd is said to be playing a listing game today and this class has been robbed. When the IPO of Paytm-One3 Communications, India's largest mega IPO of Rs 15,000 crore, came out, it was less than twice as expected due to overvaluation and high prices. But this capital has been put at stake by a class accustomed to taking advantage of extraordinary returns on the day of listing of crores and billions of rupees in the primary market, this time in the issue of Paytm by high networth investors obtaining a finance-bank loan of Rs 100 crore and applying for an IPO. A large number of shares were also allotted in response to less than expected. This high net worth investor class was