Paytm IPO Day 3 updates: One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 1.88 times on November 10, the third and final day of bidding, receiving bids for 9.12 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.64 times, while the reserved portion of non-institutional investors was subscribed 24 percent, and qualified institutional buyers have put in bids 2.79 times the portion set aside for them.
Paytm Financials
Paytm IPO Day 3 updates: One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 1.51 times on November 10, the third and final day of bidding, receiving bids for 7.3 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.61 times, while the reserved portion of non-institutional investors was subscribed 20 percent, and qualified institutional buyers have put in bids 2.13 times the portion set aside for them.
Jyoti Roy Recommends Paytm IPO
“At the upper end of the price band, Paytm is valued at 49.7x its FY21 revenues. While valuations may appear to be expensive, Paytm has become synonymous with digital payments through mobile and is the market leader in the mobile payment space. Patym is well positioned to benefit from the exponential 5x growth in mobile payments between FY2021 – FY2026 and hence believe that the valuations are justified. We recommend investors to subscribe to the issue,” says Jyoti Roy, who is DVP- Equity Strategist at Angel One.
Paytm IPO Day 3 updates: One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 1.36 times on November 10, the third and final day of bidding, receiving bids for 6.59 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.58 times, while the reserved portion of non-institutional investors was subscribed 17 percent, and qualified institutional buyers have put in bids 1.89 times the portion set aside for them.
Anand Rathi Says Subscribe Paytm IPO
“At the upper end of the IPO price band, One 97 Communications Ltd. is offered at P/B of 9.5x with a market capitalization of Rs 1,39,378.8 crore. The company benefits from both customer side and merchant side by providing payment and other services through Paytm app, the company further aims to expand its reach and benefit from scale which is challenging for other players. The company reported contribution profit of Rs 363 crore and EBITDA loss of Rs 1,655 crore in FY21. Given that the company’s ecosystem allows it to address large market opportunities, scale and reach, product, technology and leadership,” says Anand Rathi which gives this IPO a “Subscribe (Long-Term)” rating.
Paytm IPO Day 3 updates: One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 1.35 times on November 10, the third and final day of bidding, receiving bids for 6.55 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.57 times, while the reserved portion of non-institutional investors was subscribed 15 percent, and qualified institutional buyers have put in bids 1.89 times the portion set aside for them.
Key Strategy of Paytm
One 97 Communications is focused on rapidly scaling up its financial services business. The company will focus on consumers and merchants who have limited access to financial services products, and continue to work in close collaboration with its financial institution partners to create products and services addressing their requirements while leveraging its technology and insights. A key strategic focus for it is to scale up its consumer and merchant lending businesses, including Paytm Postpaid (buy-now-pay-later), in collaboration with its financial partners, as well as its wealth management offerings. The company plans to continue to leverage its partnership with Paytm Payments Bank to expand the suite of banking solutions for consumers and merchants.
Paytm IPO Day 3 updates: One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 1.34 times on November 10, the third and final day of bidding, receiving bids for 6.47 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.53 times, while the reserved portion of non-institutional investors was subscribed 13 percent, and qualified institutional buyers have put in bids 1.88 times the portion set aside for them.
Harsh Goenka Boosts Vijay Shekhar Sharma As Paytm IPO Sees Sluggish Response
Paytm IPO: Harsha Goenka lauded Vijay Shekhar Sharma for how far he has come from his humble beginnings, thanks to his hard work and perseverance.
Paytm IPO Day 3 updates: One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 1.33 times on November 10, the third and final day of bidding, receiving bids for 6.44 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.50 times, while the reserved portion of non-institutional investors was subscribed 13 percent, and qualified institutional buyers have put in bids 1.88 times the portion set aside for them.
KRChoksey Research on Paytm IPO
“We believe for current valuations to sustain, the company has to remain on the path of high growth trajectory for revenues for a period of next 3 years at least. All three verticals have to keep on firing at an accelerated pace. As per our estimates, payment revenues have to grow at a CAGR of >40%, Ecommerce and cloud revenues at > 50% and financial services at > 100% CAGR for a period of next 3 years,” says KRChoksey Research which recommended subscribe rating for listing gains.
“Looking at the past track record, we are reasonably confident that management will leave no stone unturned to achieve this. What remains to be seen is that how this growth can be achieved without burning too much of cash. We are of the opinion that during first half of current decade company will focus more on financial services and Cloud & E commerce services to turn them into profitable ventures. As most of the positives are already getting captured in the current valuation, leaving little room for sustainable upside,” the brokerage says.
