Paytm IPO Day 2 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 37 percent on November 9, the second day of bidding, receiving bids for 1.77 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.10 times, while the reserved portion of non-institutional investors was subscribed 3 percent, and qualified institutional buyers have put in bids for 29 percent shares of the portion set aside for them.
Analyst’s Take on 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 – DVP- Equity Strategist at Angel One.
Paytm IPO Day 2 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 36 percent on November 9, the second day of bidding, receiving bids for 1.74 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.07 times, while the reserved portion of non-institutional investors was subscribed 3 percent, and qualified institutional buyers have put in bids for 29 percent shares of the portion set aside for them.
Canara Bank Securities’ View on Paytm IPO
“The company exhibits substantial growth in user base and gross merchandise value since its inception within the Fin-tech sector. Moreover, the business is scalable due to high convenience of digital banking. However, the issue is available at P/B of 49.74x for FY21 which is expensive. However, we recommend Subscribe for long term to the issue,” said the brokerage.
One97 Communications (Paytm) offers payment, commerce, cloud, and financial services through its payment app. The high penetration in internet and smartphone users has supported the company to grow at faster pace due to attractive user interface by Paytm app. The company has market share of approximately 40% in the overall payments transaction volume, and 65% – 70% market share of wallet payments transaction in India as of FY2021.
Paytm IPO Day 2 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 36 percent on November 9, the second day of bidding, receiving bids for 1.73 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.05 times, while the reserved portion of non-institutional investors was subscribed 3 percent, and qualified institutional buyers have put in bids for 29 percent shares of the portion set aside for them.
Valuation Criteria for Paytm IPO
“Paytm and global peers are best valued in terms of Price to Sales multiple. One could compare Paytm to some of the other listed payment companies globally like Paypal (Enterprise Value (EV)/Revenue of 15x), Ant Group (parent company), Mastercard (EV/Revenue-24x), Visa (EV/Revenue-25x) etc,” said Divam Sharma of Green Portfolio.
“Paytm’s valuation (46.1x FY21 EV/Revenue) is at a steep premium over the 17x revenue multiple sought by China’s Ant Group in its IPO last year,” he added.
Paytm IPO Day 2 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 36 percent on November 9, the second day of bidding, receiving bids for 1.71 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.04 times, while the reserved portion of non-institutional investors was subscribed 3 percent, and qualified institutional buyers have put in bids for 29 percent shares of the portion set aside for them.
Paytm IPO Day 2 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 35 percent on November 9, the second day of bidding, receiving bids for 1.7 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.03 times, while the reserved portion of non-institutional investors was subscribed 3 percent, and qualified institutional buyers have put in bids for 76.7 lakh shares against 2.63 crore shares set aside for them.
Paytm IPO Day 2 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 35 percent on November 9, the second day of bidding, receiving bids for 1.68 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.01 times, while the reserved portion of non-institutional investors was subscribed 3 percent, and qualified institutional buyers have put in bids for 76.7 lakh shares against 2.63 crore shares set aside for them.
Paytm IPO Day 2 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 34 percent on November 9, the second day of bidding, receiving bids for 1.66 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 98 percent, while the reserved portion of non-institutional investors was subscribed 2 percent, and qualified institutional buyers have put in bids for 76.7 lakh shares against 2.63 crore shares set aside for them.
Paytm IPO: Priced At Sky-high Valuation, Should Investors Subscribe?
In its aim to be India’s super-app, Paytm has added many business lines that may augment revenues in the future, but each one comes with a lot of uncertainty.
Paytm IPO Day 2 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 21 percent on November 9, the second day of bidding, receiving bids for 1.02 lakh equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 93 percent, while the reserved portion of non-institutional investors was subscribed 2 percent, and qualified institutional buyers have put in bids for 16.79 lakh shares against 2.63 crore shares set aside for them.
