BSE & NSE
08 Nov - 10 Nov '21
₹2080 - ₹2150
Serving as a wide-ranging financial services firm Paytm provides its customers with services ranging from the original recharge services to online payments and transfers today. It also includes its business offerings like travel booking about flights, buses, and railways.
Additionally, Paytm Money serves as an investment platform that offers its clients mutual funds, stocks, and national pension scheme services. Paytm Mall vends retail goods while Paytm Payments Bank provides users with zero balance accounts with fixed deposits.
Paytm Insurance offers insurance products while Paytm Gold allows users to invest in digital gold options. Founded in August 2010, the offerings the financial services firm offers have vastly expanded over the past decade.
Paytm’s strength in the Indian marketplace has strengthened during the ongoing Coronavirus pandemic. This is owed to greater dependence and needs for digital, cashless payments. It has over 150 million monthly active users.
Accounting for 11.63 percent of the UPI business in terms of the transactions made via its UPI app in June 2021, Paytm’s grasp of the Indian consumer base makes its IPO a viable bet.
FY2021 saw Paytm report a consolidated revenue that amounted to INR 3,186.8 Crores and losses that amounted to INR 1,701 Crores.
Paytm serves as an ecosystem that allows companies to take advantage of market opportunities at scale. Paytm has established itself as a trustworthy company. Its strength lies in the fact that it has tons of insights into Indian consumers and merchants. The fact that it creates technology in-house adds to its strength.
Today, it has diversified its offerings with a vast portfolio of services. This, combined with the company's lucrative offers, has been instrumental in expanding its customer base over the years. Since digital payments are gaining significant traction, especially after the pandemic, it bodes well for the company.However, Paytm faces stiff competition against market-dominant tech firms, both domestic and international; some of these companies have greater financial resources and a substantially larger base of consumers than Paytm does.
Paytm’s weakness lies in its dependence on existing merchants to maintain and grow relationships and increase transactions. Furthermore, Paytm has a history of net losses and it has failed to maintain or improve upon its tech infrastructure
Paytm has incurred net losses for the last three years, including a restated loss for a year including discontinued operations of INR 4,235.5 crore in FY19, INR 2,943.3 crore in FY20, and INR 1,704 crore in FY21. Paytm is also dependent on social networks and search engines largely controlled by American tech giants in the Indian market.
The ongoing Covid19 pandemic has increased the need for cashless, digital payments and has increased the scope of Paytm’s consumer base.
The competitive market within which Paytm operates proves to be a threat as consumer needs and technology constantly evolve and Paytm must be able to keep up with this. Its dependency on third parties for certain portions of its business dealings can prove to be a threat in the long run. PhonePe which is supported by Google and Walmart has already overtaken Paytm in one area that is mutual to the two, indicative of the threat it poses.
You can apply for the One97 Communications Ltd. IPO in these ways:
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Does Paytm have a parent company and if so what is it?
Yes, Paytm has a parent company called One97 Communications Ltd
What is the Paytm IPO listing date?
The Paytm IPO listing date is November 18, 2021.
Has a lot size and minimum order quantity been decided for the Paytm IPO?
Yes, the lot size and minimum order quantity have been decided for the Paytm IPO.
Who is the registrar responsible for this IPO?
Link Intime India Pvt. Ltd. is the registrar responsible for Paytm’s IPO.
Who has been appointed as merchant bankers for Paytm's initial public offering?
Paytm has hired Goldman Sachs and JP Morgan as merchant bankers for its first public offering (IPO). ICICI Securities and Morgan Stanley have also joined this firm.
What is the Paytm IPO's issue type?
Paytm's first public offering (IPO) will be a bookbuild.
What is the Paytm IPO price band?
The price band of this book building IPO is INR 2080 to INR 2150 per equity share.
What is the issue size of the Paytm IPO?
The Paytm IPO size is equity shares of Re 1 aggregating up to INR 18,300 crore.
Is the Paytm IPO worth investing in?
This decision depends on various factors. This includes company financials, segment outlook, market situation, issue pricing, the background of promoters, lead managers performance, company strengths, risks, managers’ subscriptions.
Which investor categories can participate in this IPO?
Qualified institutional buyers (QIBs) will be allotted 75% of Paytm's public issue while 15% for non-institutional investors (NIIs) and the balance 10% for retail investors.
How is Paytm looking to utilize the funds from the IPO?
Paytm intends to utilize INR 4,300 crore from the IPO proceeds to bolster its ecosystem by acquiring and retaining consumers and merchants. This will be done by offering them more access to technology and financial services. It would invest up to INR 2,000 crore for new business initiatives, acquisitions, and strategic partnerships.