Morgan Stanley Asia (Singapore) Pte, one of the lead managers of the initial public offering of One97 Communications Ltd, the parent company of Paytm, has sold a substantial portion of its stake in the firm, the latest data on the shareholding pattern revealed.
Morgan Stanley’s name is missing from the key shareholders' list, as per data. However, it is not clear whether the brokerage firm has sold its entire stake in Paytm or its ownership has come down to less than one percent. Publicly listed companies only list the names of investors who own more than one percent stake in the company.
According to the September quarter shareholding data, Morgan Stanley held 7.82 million shares or a 1.21 percent stake in Paytm. At the time of listing, it had 1.39 million shares in the anchor book for Rs 298.50 crore.
Paytm was listed on November 18 with an issue price of Rs 2,150. It has since then lost 50 percent of its market value. Valuation has been a significant concern since its listing. The company had a valuation of around Rs 1.39 trillion at the time of listing; however, the valuation currently stands at around Rs 63,000 crore.
On December 22, 2021, Morgan Stanley's research arm gave an overweight rating on the stock with a target price of Rs 1,875 a share.
“Through its digital payment platform, we believe PAYTM has built a strong customer acquisition engine, which has achieved significant scale - both with consumers and merchants. India has a distinctive tech architecture and is significantly under-penetrated in financial services - PAYTM is well placed to leverage this via bank/NBFC partnerships, and is rapidly cross-selling financial services/commerce at low incremental costs,” the brokerage firm said in a note to its investors.
“Paytm does not take credit risk and we believe the bank-fintech collaborative approach is synergistic, scalable and inline with regulatory guidelines. As financial services ramp up, we expect revenues and profitability to grow strongly over the next five years,” the firm added.
Meanwhile, foreign investors reduced their stake in Paytm by 100 basis points to 9.36 percent from 10.37 percent earlier. Interestingly, mutual funds have increased their stake to 1.06 percent from 0.81 percent earlier.
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