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IPO CORNER: Paytm plunges on debut; Policybazaar lists at 17% premium over issue price

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Here’s all the latest news from IPO-bound train of Indian startups.

IPO CORNER: Paytm plunges on debut; Policybazaar lists at 17% premium over issue price
Paytm plunges in market debut; VSS says share price not a true reflection of co's scale
Even as shares of One97 Communications continued to trade sharply lower after a weak market debut, Paytm Founder Vijay Shekhar Sharma said the stock price as on November 19 is not a true reflection of the company's opportunity and scale.
"Today’s share price or any day's share price will actually never be a true reflection of our opportunity and our scale. It is simply an opinion of few buyers and sellers of that day," Sharma said in an interview with CNBC-TV18.
The CEO said while people know about the Paytm 'product,' they may not necessarily understand the company's business model.
"People will take time to understand the business model. The fact that a payment company can do financial services like private insurance and wealth is something new to the Indian stock market... Over the period it will show up what this business model and scale is," Sharma said.
Paytm shares fell sharply after they made a weak market debut at a discount of 9 percent to the issue price. At the time of writing, the stock was trading 26.37 percent lower at Rs 1,583.10 on the BSE.
Policybazaar makes strong debut, shares list at 17% premium over issue price
PB Fintech, the operator of insurance platform Policybazaar and financial services portal Paisabazaar, made a strong debut on Dalal Street on November 15. Policybazaar shares began their journey in the secondary market at Rs 1,150 apiece each on BSE and NSE, a premium of 17.4 percent over the issue price of Rs 980 of its IPO, which saw a robust response from investors.
The initial share sale of PB Fintech, which was open for subscription from November 1-3, saw an overall subscription of 16.6 times the shares on offer. The Policybazaar IPO received bids for 57.2 crore equity shares as against the offer size of 3.5 crore.
The portion reserved for qualified institutional buyers (QIBs) was subscribed 24.9 times, and that for non-institutional investors 7.8 times. The retail investor's category saw a subscription of 3.3 times.
The IPO comprised fresh issuance of shares worth Rs 3,750 crore and an offer for sale (OFS) worth Rs 1,960 crore. The SoftBank-backed startup raised around Rs 2,569 crore from 155 anchor investors prior to the public offer.
Freshworks, Dream11, Swiggy and Indifi founders invest in IPO-bound Pine Labs: Report
Merchant commerce platform Pine Labs’ Co-Founder Lokvir Kapoor has offloaded shares worth nearly $4.5 million to 12 new investors of the company, Entrackr reported.
Kapoor has sold shares worth nearly $4.5 million to 12 investors, which include Dream11 Founder Harsh Jain & Family, Freshworks Founder Girish Mathrubootham, Indifi Founder Alok Mittal, Swiggy Founder Sriharsha Majety and Relation Capital, the report added.
Following the secondary transaction, Jain & Family acquired shares worth $950,000 in Pine Labs from Kapoor, followed by Mathrubootham and Relation Capital, who bought shares worth $615,000 each. Mittal, Majety and seven other investors have bought the remaining shares.
“We wanted to get our friends and founders to share our journey. The opportunity shouldn’t be restricted to just large investors and bankers as more entrepreneurs create cross holdings in other peer startups, we will truly build a close community,” CEO of Pine Labs Amrish Rau said on Twitter.
The startup is gearing up for an initial public offering (IPO) in the US at a $6 billion valuation.
Ola strengthens leadership team following a series of exits
Ride-hailing platform Ola on November 16 announced the joining of P.V. Harinarayan as vice-president (lending) at Ola Financial Services. V. Ramesh has joined as the head (operations) at Ola Future Factory and Priteesh Mahajan has been named as head of two-wheeler programme management and product planning at Ola Electric.
Ahead of its IPO, Ola has also seen a number of exits of senior executives, including that of Swayam Saurabh (Ola CFO) and Gaurav Porwal (COO) and Sandeep Chowdhury (General Counsel).
MoneyControl has reported that Ola Electric has let go of its head of quality assurance Joseph Thomas, after hiring him barely a year ago. His exit comes amid delays in its scooter delivery schedule.
However, the Bengaluru-based company has made many appointments as well, including that of Arun Sirdeshmukh (Ola Cars CEO) and Vinay Bhopatkar (head of delivery business). Ola, in its statement, said it has also accelerated hiring across all levels to build a deep bench strength of talent and leadership pipeline.
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