Paytm IPO

 

Paytm is India’s top digital ecosystem for customers and merchants. As of March 31, 2021, they serve 333 million customers and over 21 million merchants with payment, commerce, and cloud services, as well as financial services. Paytm IPO will hit the market on 08 November 2021.

About Paytm

They established Paytm in 2009 as a “mobile-first” digital payments network to allow Indians to make cashless payments using their cellphones.

They have developed the biggest payments network in India focusing on the number of customers, merchants, transactions, and revenue as of March 31, 2021, as per RedSeer.

Beginning with bill payments and mobile top-ups as the initial use case and Paytm Wallet as the first Paytm Payment Mechanism.

They’ve also been able to use their core payments technology to create an ecosystem of new commerce, cloud, and financial services products.

Growth

By utilising technology to enhance the customers’ lives and assist their merchants develop their companies, their two-sided (consumer and merchant) ecosystem facilitates trade and offers access to financial services.

As per RedSeer, Paytm is present throughout the nation with the phrase “Paytm karo” (i.e. “use Paytm”) having become a verb for millions of people of Indian customers, shopkeepers, merchants, and small companies.

The “Paytm” trademark is India’s most valuable payments company, according to the Kantar BrandZ India 2020 Report, with a brand worth of US$ 6.3 billion, and Paytm maintains the quickest method of trading throughout different ways.

Paytm App

They’ve developed a payments-driven super-app via which they can provide their customers with cutting-edge digital products and services.

On the Paytm app, they provide they customers with a variety of payment options:

• Paytm Payment Methods, which enable them to utilise digital wallets, sub-wallets, bank accounts, buy-now-pay-later, as well as wealth management accounts.
• Key third- Party tools, including debit and credit cards, and net banking.

Service to Clients

On their app, customers can pay bills, top up their phones, transfer money virtual, create and manage Paytm Payment Instruments verify linked account balances.

It support city challans and municipal payments, purchase of travel and entertainment tickets, play games online, connect digital banking services, take loans, pay premiums, and invest.

Paytm IPO

One 97 Communications Limited(Paytm), headquartered in New Delhi has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 16,600 crore on 15 July, 2021.

They planned to collect INR 16,600 cr via its initial public offering (IPO). There will be fresh issue of 8,300 & OFS (offer for sale) of 8,300 cr. from existing Principal Shareholders mentioned in the drhp of the company.

They got the approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market on 22 October 2021.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-21	31-Mar-20	31-Mar-19
Total Assets		9,151.30	10,303.10	8,766.80
Total Revenue		3,186.80	3,540.70	3,579.70
Loss After Tax		(1,701)	(2,942.4)	(4,230.9)

Basic and Diluted Earnings Per Share (EPS)

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	(28)	(28)	3
Financial Year 2020	(49)	(49)	2
Financial Year 2019	(75)	(75)	1
Weighted Average	(43)	(43)

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of The offer

The following are among the qualitative variables that go into determining the Offer Price:

• Their ecosystem enables us to take advantage of significant market opportunities.
• Their well-known brand, size, and presence.
• Their in-depth knowledge of Indian shoppers and businesses.
• The DNA of their products and technology
• Their network effect provides us with long-term benefits.
• Their visionary management and distinct culture.

Paytm IPO Peer Comparison

There are no publicly traded businesses in India that operate in a similar industry to them. As a result, providing an industry comparison in respect to their Company is not feasible.

Paytm IPO Details

IPO Opening Date	08 November 2021
IPO Closing Date	10 November 2021
Issue Type	Book Built
Face Value	1 per  share
IPO Price	2,080 to 2,150 per equity share
Market Lot	6
Minimum Amount	INR 12,900
Listing At	BSE, NSE
Issue Size	16600 Cr.
Fresh Issue	8300 Cr.
Offer for Sale	8300 Cr.

Paytm IPO Dates

Paytm IPO opening date is 08 November 2021, and the closing date 10 November 2021. The issue may list in 18 November 2021.

IPO Open Date	08 November 2021
IPO Close Date	10 November 2021
Basis of Allotment Date	15 November 2021
Initiation of Refunds	16 November 2021
Credit of Shares to Demat Account	17 November 2021
IPO Listing Date	18 November 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum level of 1 lot, based on availability, for every shareholder.

Paytm IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Paytm IPO.

Paytm IPO GMP

Paytm IPO Grey Market Premium is INR 22.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
16 November 2021	22	1600	150
15 November 2021	24	1800	150
14 November 2021	33	2800	250
13 November 2021	28	2200	200
12 November 2021	17	1300	100
11 November 2021	25	1000	100
10 November 2021	58	1900	200
09 November 2021	62	1400	150
08 November 2021	70	1100	100
07 November 2021	95	1700	150
06 November 2021	104	2300	250
05 November 2021	121	1600	150
04 November 2021	139	3300	300
03 November 2021	135	2400	250
02 November 2021	155	700	100
01 November 2021	255	3400	350
31 October 2021	250	1800	150
30 October 2021	235	4200	400
29 October 2021	225	4400	450

Paytm IPO Review

Answer to your question Paytm IPO is good or bad is you should apply in this IPO for both listing gain and long term as well. The management is promising and business model is also on the boom now a days as india is becoming cashless.

Moreover, due to covid people avoid keeping cash and this is good for companies like paytm. This is a new age business which can become multibagger in long term.

Paytm IPO Risk

• The company will suffer if they are unable to recruit merchants to their ecosystem, expand their relationships with current merchants, and boost transaction volumes on the networks.
• The company may suffer if they are unable to retain existing customers, acquire new customers, grow the amount of consumer transactions, or increase in the client acquisition expenses.
• They may not be able to sustain and improve their platform’s network impacts, which might have a significant negative impact on the company.
• Their payment services account for the majority of their income. Their attempts to broaden their service offerings and market reach may not be successful, which might have a negative impact on their income.

Other Threats

• The ongoing COVID-19 epidemic might have a substantial and negative impact on their company.
• If they do not successfully manage the expansion, they may be unable to carry out their business strategy or keep high levels of service and comfort, and the business may suffer as a result.
• The business might suffer if they do not maintain or develop their technological infrastructure.
• Some of their services are provided in collaboration with Paytm Payments Bank, a member of their group. Paytm Payments Bank’s inability to enable these services might have an impact on the company.
• They have a history of net losses, and they expect operating expenditures to rise in the future, making it unlikely that they will be able to attain and sustain profitability.

Services to Merchants

They assist merchants in expanding their businesses by providing solutions that enable them to take payments, acquire customers, enhance company processes, and get access to financial services.

They may take payments using Paytm Payment tools and popular third-party payment methods options through in-store and digital payment services.

They provide services such as selling tickets to consumers, marketing, mini-app listings, channel and reward solutions to assist them attract and keep customers and build demand.

They offer software and cloud programs to assist big, medium, and small merchants better their company processes, in addition to assisting their vendor ecosystem in facilitating more trade.

Paytm IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Paytm IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
08 November 2021	1	0.07	0.02	0.81	N/A	0.19
09 November 2021	2	0.46	0.05	1.23	N/A	0.48
10 November 2021	3	2.79	0.24	1.66	N/A	1.89

Principal Shareholders

1. API
2. SVF

Principal Shareholders’s Holding

Pre Issue Share Holding	34%
Post Issue Share Holding

Paytm IPO Prospectus