PAYTM IPO:-
Paytm’s IPO was closed for investment on 10 November. The company had kept the price band for this IPO from Rs 2,080 to Rs 2,150 per share. Paytm was founded by Vijay Shekhar Sharma. Sharma, a native of a small village in Aligarh district of UP and son of a school teacher, is included in the list of billionaires of Forbes today.
The IPO of the country’s largest digital company Paytm has opened today. This IPO of Rs 18300 crore is the biggest IPO ever in the country. Earlier this record was in the name of the giant state-owned company Coal India, whose IPO came in 2010 and it was worth Rs 15475 crore. Paytm’s IPO is worth Rs 18300 crore, under which new shares worth Rs 8300 crore will be issued. For investing in this, investors will have to invest at least Rs 12,900 according to the upper price of the fixed price band. About 30 percent of Paytm’s Rs 18,300 crore IPO is owned by the Chinese giant Ant Group, ie, two companies of Ant Group will sell shares worth about Rs 5490 crore through the issue. In the gray market, its shares are at a premium of just 3 percent from the upper price of the price band, that is, at a price of Rs 2210 per share. However, market experts have advised investing in it for the long term.
According to the Kantar Brand Z India 2020 Report, the brand value of Paytm, the payment app company of One97 Communications, is $ 630 million (Rs 46753.15 crore), which is the highest among all payments brands. Not only do money transactions and shopping happen through this app, but shopkeepers also use it for advertising of their products etc.
One 97 Communications Limited IPO (Paytm IPO):-
1. The country’s largest digital payment company Paytm’s Rs 18,300 crore IPO has opened today and will remain open till November 10.
2. Under the issue, new shares worth Rs 8300 crore will be issued while shares worth Rs 10 thousand crore will be sold under Offer for Sale (OFS).
3. The price band for shares with face value of Re 1 has been kept at Rs 2080-2150 per equity share.
Paytm’s parent company One97 Communications has fixed a lot size of 6 shares i.e. investors will have to invest at least Rs 12900.
4. The price band for shares with face value of Re 1 has been kept at Rs 2080-2150 per equity share.
Paytm’s parent company One97 Communications has fixed a lot size of 6 shares i.e. investors will have to invest at least Rs 12900.
5. The allotment is likely to be final on November 15 while the shares may get listed on the exchange on November 18. Link Intime India has been appointed as the Registrar for the issue.
With Rs 4300 crore raised through IPO, the company will further strengthen its ecosystem.
Chinese giant’s stake will be reduced:-
Through IPO, shares worth Rs 10,000 crore will be sold under Offer for Sale (OFS). In this, the companies of Ant Group will sell the most. According to the RHP (Red Herring Prospectus) filed by the company, Ant Group’s AntFinance (Netherlands) will sell shares for Rs 4704.43 crore and Alibaba.com Singapore E-commerce for Rs 784.82 crore. According to the documents filed with SEBI, 27.9 per cent in the company of Antfin (Netherlands) Holding BV and Alibaba.com Singapore E-commerce Private Limited holds 6.8 percent stake, both these companies will sell shares worth Rs 5489.25 crore, which is about 30 percent of the total issue. The company’s founder and CEO Vijay Shekhar Verma has 14.7 per cent equity holding in it and will sell shares worth Rs 402.65 crore.
Why Paytm IPO Failed?
The reason for Paytm’s weak listing in the stock market is also that there have been several IPOs in the recent past, whose valuation is being worried. According to a research firm, Paytm is a very big company in terms of business and now it is finding it difficult to turn profitable soon. Many research firms have kept the target price of Paytm at Rs 1200.
Paytm IPO Listing:
Under the country’s largest IPO, the listing of Paytm in the stock market on Thursday has been disappointing. Paytm has changed the price band for this IPO The price band was kept at Rs 2,080 to Rs 2,150 per share.
The listing of its shares under the IPO of One97 Communications Ltd, a fintech startup company that runs digital payments company Paytm, has been disappointing. On Thursday, the shares of Paytm were listed on BSE at Rs 1955 and on National Stock Exchange (NSE) at Rs 1950.
Around 10.50 am, the shares of Paytm on the BSE fell by about 19 per cent to Rs 1,586.25. This fall is close to the issue price is 26 percent. Similarly, during trading on NSE, the shares of Paytm reached Rs 1,687.35.
The company has raised about Rs 18,300 crore from this. Paytm’s IPO was closed for investment on 10 November. The company has changed the price band for this IPO from 2,080 to 2,150 per share was kept at Rs.
Paytm was founded by Vijay Shekhar Sharma. Native of a small village in Aligarh district of UP and son of a school teacher Sharma is included in the list of billionaires of Forbes today.
BIGGEST IPO:-
Paytm IPO is the biggest ever IPO in the country Earlier, Coal India had brought an IPO of more than Rs 15,000 crore and Reliance Power Rs 11,000 crore in the market. Both the big IPOs came before Belongs to the energy sector. At the same time, Paytm IPO is completely IPO of technology sector company.
How to buy Paytm IPO?
First of all, to apply for Paytm IPO, open Paytm in your mobile. After that click on Invest in IPO in its Featured category. After which the IPO of Paytm will appear in front. By clicking on it, the page for investing in IPO will open, where information about price band (2080-2150) and lot size will be available.
When will Paytm IPO list?
The shares will be listed tomorrow i.e. on 18 November 2021. However, some market experts are keeping an eye on the gray market as well. After the announcement of Paytm IPO, market experts are eyeing the share listing date. The shares will be listed tomorrow i.e. on 18 November 2021.
How much is Paytm IPO subscribed?
Paytm IPO: The issue of One97 Communications, the parent company of payment company Paytm, was subscribed 1.34 times till the last day. 6.47 crore bids were received against 4.83 crore equity shares of the company. The reserve share for retail investors is subscribed 1.58 times.
Why is Paytm share price falling?
Paytm’s parent company One97 Communications has registered a loss of Rs 1701 crore in the financial year 2021, in the profit that has not come till date. According to Telegraph India, this is the eighth consecutive year that the company has suffered a loss.
This is the opinion of experts regarding investment:-
1 According to Reliance Securities, Paytm’s IPO is valued at 43.7 times FY21 sales and 36.7 times FY22 sales estimated at a 12 per cent discount to the recently listed Unicorn Zomato. Despite the pandemic, Paytm’s Gross Merchantise Value has grown at a CAGR (Compound Annual Growth Rate) of 33 per cent between FY 2019-21 and FY 2021-26. Its digital payments business is expected to grow at a CAGR of 17 per cent in value terms between Rs. Based on this, Vikas Jain, Senior Research Analyst, Reliance Securities has advised investors to subscribe to Paytm’s IPO for the long term.
2 According to Ashish Chaturmohta, Director Research, Sanctum Health, the digital business is likely to grow more than three times in the next five years and mobile app payments are increasingly playing a role in the fast-moving era of cashless societies. Paytm IPO is available at 49.7 mcap/FY21 revenue. Paytm has a strong presence in the digital finance space despite the high valuations. Due to this, Sanctum Wealth has given it a subscribe rating.
Paytm not profitable in any financial year:-
The company has around 333 million customers and 114 million annual transacting users and 210 million registered merchants. Talking about the financial condition of the company, since Paytm has started, it has not made any profit in any financial year. In the last three financial years, there has been no profit (profit after tax) but the loss has come down. In the financial year 2019, the company had a loss of Rs 4230.9 crore, which came down to Rs 2942.4 crore in the next financial year 2020 and then came down to Rs 1701 crore in the next financial year 2021.
who sold how much stake:-
Company’s founder Vijay Shekhar Sharma has sold his stake of up to Rs 402.65 crore in the OFS of Paytm IPO. At the same time, among the existing investors of Paytm, Antfin (Netherlands) Holdings up to Rs 4,704.43 crore, Alibaba up to Rs 784.82 crore, Elevation CapitalV FII Holdings up to Rs 75.02 crore, Elevation Capital V Ltd up to Rs 64.04 cr, Siaf III Mauritius up to Rs 1,327.65 cr, Saif Partners up to Rs 563.63 cr, SVF Partners has sold stake up to Rs 1,689.03 crore and International Holdings up to Rs 301.77 crore.