{"id":5471,"date":"2021-11-02T19:28:13","date_gmt":"2021-11-02T13:58:13","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=5471"},"modified":"2022-05-24T10:15:34","modified_gmt":"2022-05-24T04:45:34","slug":"paytm-ipo","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/paytm-ipo\/","title":{"rendered":"Paytm IPO &#8211; India\u2019s Largest Online Payment App Going Public"},"content":{"rendered":"\n<p>It brought about days where all you have to do is open a mobile payment app on your phone, click &#8216;Pay&#8217;, and then select&nbsp; &#8216;QR code.&#8217; Scan the receiver&#8217;s QR code and input the amount to be paid. And the funds will be transferred in a matter of seconds. One such online payment app is <a href=\"https:\/\/www.tickertape.in\/blog\/paytm-payment-bank-down-13-rbi-banned-adding-new-customers\/\">Paytm<\/a>. When demonetisation happened, Paytm saw a 700% increase in overall traffic, a 1,000% increase in the value of money placed into Paytm accounts, and a record 5 mn. transactions per day.<\/p>\n\n\n\n<p>Paytm is India&#8217;s largest financial services firm, providing customers, offline merchants, and internet platforms with full-stack payments and banking solutions. Through payments, trade, banking, investments, and financial services, the firm aims to integrate half a billion Indians into the mainstream economy. Paytm has now decided to go public. To assess whether to subscribe to Paytm <a href=\"https:\/\/www.tickertape.in\/blog\/ipo-investment\/\">IPO<\/a> or not, trawl through this article for relevant details.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/paytm-ipo\/#About-Paytm\" title=\"About Paytm\">About Paytm<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/paytm-ipo\/#Operations-of-the-company\" title=\"Operations of the company\">Operations of the company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/paytm-ipo\/#Services-of-Paytm\" title=\"Services of Paytm\">Services of Paytm<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/paytm-ipo\/#Promoter-and-investors-exiting-their-shares\" title=\"Promoter and investors exiting their shares\">Promoter and investors exiting their shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/paytm-ipo\/#About-Paytm-IPO\" title=\"About Paytm IPO\">About Paytm IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/paytm-ipo\/#Book-running-lead-managers-and-registrar-of-the-Paytm-IPO\" title=\"Book running lead managers and registrar of the Paytm IPO\">Book running lead managers and registrar of the Paytm IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/paytm-ipo\/#Reservation-of-Paytm-IPO-for-various-investor-categories\" title=\"Reservation of Paytm IPO for various investor categories\">Reservation of Paytm IPO for various investor categories<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/paytm-ipo\/#Objects-of-the-Paytm-IPO\" title=\"Objects of the Paytm IPO\">Objects of the Paytm IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/paytm-ipo\/#Financials-of-Paytm\" title=\"Financials of Paytm\">Financials of Paytm<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/paytm-ipo\/#Peer-comparison\" title=\"Peer comparison\">Peer comparison<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/paytm-ipo\/#Strengths-of-the-company\" title=\"Strengths of the company\">Strengths of the company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/paytm-ipo\/#Risks-of-Paytm-IPO\" title=\"Risks of Paytm IPO\">Risks of Paytm IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/paytm-ipo\/#Prospects-of-the-company\" title=\"Prospects of the company\">Prospects of the company<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"about\"><span class=\"ez-toc-section\" id=\"About-Paytm\"><\/span><strong>About Paytm<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One 97 Communications Ltd (Paytm) is India&#8217;s premier digital ecosystem for both consumers and merchants. This company was incorporated as &#8220;One 97 Communications Private Limited,&#8221; a private limited company on 22 December 2000.&nbsp; Following that, the company&#8217;s name was changed to &#8220;One 97 Communications Limited&#8221; in accordance with a new certificate of incorporation dated 12 May 2010 issued by the Deputy Registrar of Companies.<\/p>\n\n\n\n<p>According to the Kantar BrandZ India 2020 Report, in 2009, the company launched the first digital mobile payment platform, &#8220;Paytm App,&#8221; to provide customers with cashless payment services. It has since grown to become India&#8217;s largest payment platform and the most valuable payments brand, with a total brand value of $ 6.3 bn.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"operations\"><span class=\"ez-toc-section\" id=\"Operations-of-the-company\"><\/span><strong>Operations of the company<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to RedSeer, Paytm is India&#8217;s largest digital ecosystem for consumers and businesses. As of 31 March 2021, it provided payment services, commerce and cloud services, and financial services to 333 mn. consumers and over 21.1 mn. businesses. Its two-sided (consumer and merchant) ecosystem enables business and offers access to financial services through its financial institution partners by utilising technology to better consumers&#8217; lives and assist merchants in growing their companies.<\/p>\n\n\n\n<p>India is a country with hundreds of millions of young and aspiring customers that are underserved in terms of payment and financial services to meet their demands. Millions of small companies in India would benefit from improved access to inexpensive software, technology, and financial services. According to RedSeer, consumers and small companies may be served through technology-led, digital-first commerce. Due to considerable under-penetration and the capacity of technology to increase the industry, the market sectors that Paytm services have significant growth potential.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"services\"><span class=\"ez-toc-section\" id=\"Services-of-Paytm\"><\/span><strong>Services of Paytm<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Because of the epidemic and subsequent lockdown, the total number of bank notes and money circulation has dropped, while internet payments have increased. Paytm allows customers to use its&nbsp; app to make cashless purchases in stores, top up mobile phones, send money online, pay bills, use <a href=\"https:\/\/www.tickertape.in\/blog\/digital-banking-and-fintech-payments-what-lies-ahead\/\">digital banking<\/a> services, buy tickets, buy insurance, opt for fixed deposit, buy <a href=\"https:\/\/www.tickertape.in\/blog\/the-golden-behaviour-during-crisis\/\">gold<\/a>, and <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a>, among other things. Merchants, on the other hand, can utilise the platform for advertising, online payment solutions, providing items to customers, and loyalty programmes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"promoter\"><span class=\"ez-toc-section\" id=\"Promoter-and-investors-exiting-their-shares\"><\/span><strong>Promoter and investors exiting their shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This firm is professionally managed and does not have a known promoter in terms of <a href=\"https:\/\/www.tickertape.in\/blog\/securities-and-exchange-board-of-india-functions-powers-and-regulations-of-sebi\/?utm_source=blog&amp;utm_medium=article\">SEBI<\/a> ICDR Regulations and the Companies Act, 2013.&nbsp;<\/p>\n\n\n\n<p>Among the selling <a href=\"https:\/\/www.tickertape.in\/blog\/shareholders\/\">shareholders<\/a>:<\/p>\n\n\n\n<ul><li>The founder Mr Vijay Shekhar Sharma is offloading shares worth Rs. 402.65 cr.&nbsp;<\/li><li>Antfin (Netherlands) Holding B.V. is selling shares worth Rs. 4704.43 cr.<\/li><li>Alibaba.com Singapore <a href=\"https:\/\/www.tickertape.in\/blog\/buying-stocks-gets-as-convenient-as-making-online-purchases\/\">E-commerce<\/a> Limited selling shares worth Rs. 784.82 cr.&nbsp;<\/li><li>Elevation Capital V FII Holdings Limited offloading shares worth Rs. 75.02 cr.<\/li><li>Elevation Capital V Limited is selling shares worth Rs. 64.01 cr.<\/li><li>Saif III Mauritius Company Limited is offloading shares worth Rs. 1327.65 cr.<\/li><li>Saif Partners India IV Limited is selling shares worth Rs. 563.63 cr.<\/li><li>The SVF Panther (Cayman) Limited is offloading shares worth Rs. 1689.03 cr.&nbsp;<\/li><li>And BH International Holdings is selling shares worth Rs. 301.77 cr.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"paytm\"><span class=\"ez-toc-section\" id=\"About-Paytm-IPO\"><\/span><strong>About Paytm IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>This IPO is a 100% book building offer.<\/li><li>The <a href=\"https:\/\/www.tickertape.in\/blog\/offer-price\/\">offer price<\/a> is up to Rs. 18,300 cr., which includes a fresh <a href=\"https:\/\/www.tickertape.in\/blog\/issue-of-shares\/\">issue of shares<\/a> worth up to Rs. 8,300 cr. and an offer to sell shares of up to Rs. 10,000 cr.<\/li><li>The <a href=\"https:\/\/www.tickertape.in\/blog\/face-value-of-share\/?utm_source=blog&amp;utm_medium=article\">face value <\/a>of each share is set to be Re. 1 and the set price band is of Rs. 2,080 &#8211; 2,150.<\/li><li>Paytm IPO opens for subscription on 8 November 2021 and the closing date is 10 November 2021.<\/li><li>The lot size is 6 shares worth Rs. 12,900 at the upper range of the price band.<\/li><li>The allocation is expected to be finalised by 15 November, and refunds will be initiated by 16 November. Meanwhile, credit of shares in the Demat account is expected by 17 November.<\/li><li>The issue constitutes 13.13% of the post issue paid-up capital of the company.&nbsp;<\/li><li>The company is looking at a market cap of Rs. 1,39,378.84 cr. post-issue (based on the upper price band of the IPO).<\/li><li>Paytm IPO is likely to be listed on the <a href=\"https:\/\/www.tickertape.in\/stocks\/bse-BSEL?checklist=basic&amp;utm_medium=article&amp;utm_source=blog\" target=\"_blank\" rel=\"noreferrer noopener\">BSE<\/a> and <a href=\"https:\/\/www.tickertape.in\/blog\/national-stock-exchange\/?utm_source=blog&amp;utm_medium=article\">NSE<\/a><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"book\"><span class=\"ez-toc-section\" id=\"Book-running-lead-managers-and-registrar-of-the-Paytm-IPO\"><\/span><strong>Book running lead managers and registrar of the Paytm IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The joint global coordinators and lead managers of the Paytm IPO are Morgan Stanley India Company Private Limited, Goldman Sachs (India) Securities Private Limited, Axis Capital Limited (<a href=\"https:\/\/www.tickertape.in\/blog\/securities-and-exchange-board-of-india-functions-powers-and-regulations-of-sebi\/\">SEBI<\/a> coordinator), <a href=\"https:\/\/www.tickertape.in\/stocks\/icici-securities-ICCI?&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">ICICI Securities Limited<\/a>, J.P. Morgan India Private Limited, Citigroup Global Markets India Private Limited, and <a href=\"https:\/\/www.tickertape.in\/stocks\/hdfc-bank-HDBK?&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">HDFC Bank Limited<\/a>.<\/p>\n\n\n\n<p>The issue&#8217;s registrar is Link Intime India Private Limited.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"reservation\"><span class=\"ez-toc-section\" id=\"Reservation-of-Paytm-IPO-for-various-investor-categories\"><\/span><strong>Reservation of Paytm IPO for various investor categories<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>10% is the maximum subscription amount reserved for retail investors.<\/li><li>15% is reserved for the Non-Institutional bidders (NII).<\/li><li>75% is reserved for the Qualified institutional buyers (QIBs), wherein 60% is for anchor investors, 1\/3rd of which is reserved for domestic <a href=\"https:\/\/www.tickertape.in\/blog\/mutual-funds\/\">mutual funds<\/a> only.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"objects\"><span class=\"ez-toc-section\" id=\"Objects-of-the-Paytm-IPO\"><\/span><strong>Objects of the Paytm IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Rs. 4,300 cr. will be used for growing and fortifying the Paytm ecosystem, particularly through acquiring users and merchants and giving them more access to technology and financial services.<\/li><li>Rs. 2,000 cr. will be used to invest in new business ventures, acquisitions, and strategic alliances.<\/li><li>General corporate purposes.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"financials\"><span class=\"ez-toc-section\" id=\"Financials-of-Paytm\"><\/span><strong>Financials of Paytm<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>As of 30 June 2021, the net asset value (NAV) stands at Rs. 104.<\/li><li>For the June quarter its revenue from operations rose 61% y-o-y to ~Rs. 890 cr.<\/li><li>For the last three fiscal years, PB Fintech has posted a negative <a href=\"https:\/\/www.tickertape.in\/blog\/earnings-per-share\/?utm_source=blog&amp;utm_medium=article\">EPS<\/a> of Rs. 42 and a negative RoNW of 36.90%.<\/li><li>For the first three months ended on 30 June 2021, it posted a loss of Rs. 110.84 cr. on a total income of Rs. 258.17 cr.<\/li><li>It has been posting negative earnings for all these years.&nbsp;<\/li><\/ul>\n\n\n\n<p><strong>Following are the financials for 2019, 2020, and 2021<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/11\/Paytm-table-1.png\" alt=\"\" class=\"wp-image-5480\" width=\"726\" height=\"332\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/11\/Paytm-table-1.png 726w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/11\/Paytm-table-1-300x137.png 300w\" sizes=\"(max-width: 726px) 100vw, 726px\" \/><figcaption>Source: Tickertape<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"peer\"><span class=\"ez-toc-section\" id=\"Peer-comparison\"><\/span><strong>Peer comparison<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the offer documents, PB Fintech has no listed peers in India that engage in a similar business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"strengths\"><span class=\"ez-toc-section\" id=\"Strengths-of-the-company\"><\/span><strong>Strengths of the company<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>It is the leading digital payment service platform in India.<\/li><li>With a brand worth of $6.3 bn., it has a strong brand identity.<\/li><li>With 333 mn. overall consumers, 114 mn. yearly transactional users, and 21 mn. registered merchants, the company has a large client base.<\/li><li>It has an app named Paytm Super for mobile phones to access a variety of digital payment services.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"risks\"><span class=\"ez-toc-section\" id=\"Risks-of-Paytm-IPO\"><\/span><strong>Risks of Paytm IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Investments in equities and equity-related securities are risky. Before making an investment in an <a href=\"https:\/\/www.tickertape.in\/blog\/ipo-process\/?utm_source=blog&amp;utm_medium=article\">IPO<\/a>, investors should carefully consider the risk factors.<\/p>\n\n\n\n<ul><li>Failure to maintain or develop the IT infrastructure may have a negative impact on the company and prospects.<\/li><li>Some of the services are provided in collaboration with the group company, Paytm Payments Bank. Any failure by Paytm Payments Bank to support these services might have a negative impact on these services as well as the entire company, financial condition, and operating performance.<\/li><li>It has a history of losses and expects to continue to incur net losses for the foreseeable future.<\/li><li>Failure in attracting merchants to its ecosystem, growing relationships with existing merchants, and increasing transaction volumes on its platforms may adversely affect its operations, financial condition, cash flows and prospects.<\/li><li>There are pending litigations against One97 Communications, its subsidiaries, and certain directors. Any adverse decision in such proceedings may adversely affect business, cash flows and reputation.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"prospects\"><span class=\"ez-toc-section\" id=\"Prospects-of-the-company\"><\/span><strong>Prospects of the company<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Paytm is a well-known brand for sure. If you are interested in this investment opportunity, make sure to conduct thorough research before subscribing to this IPO. To ensure a pleasant experience while subscribing to an IPO, read the article on <a href=\"https:\/\/www.tickertape.in\/blog\/all-you-need-to-know-about-ipos\/?utm_source=blog&amp;utm_medium=article\">how to subscribe to an IPO.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As of 27 October 2021, Paytm has ~333 mn. users, making it one of India&#8217;s major digital payment platforms. This article discusses all the relevant information related to the Paytm IPO.<\/p>\n","protected":false},"author":54,"featured_media":5482,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[9,1727],"tags":[227,208,934],"acf":[],"modified_by":"Anjali Chourasiya","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/11\/paytm_IPO.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5471"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/54"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=5471"}],"version-history":[{"count":6,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5471\/revisions"}],"predecessor-version":[{"id":8462,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5471\/revisions\/8462"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/5482"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=5471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=5471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=5471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}