Table of Contents
- One97 communications/Paytm Details
- What are the Risk factors in Paytm IPO
- What are the Competitive strengths in Paytm IPO
- What are the Products and services offered by Paytm?
- Financial track record of Paytm
- Objective behind IPO
- Paytm IPO GMP today
- Paytm IPO is overpriced or underpriced?
- Paytm IPO open date & close date
- Paytm IPO IPO Finalization of Allotment, refund date & listing Date
- Paytm IPO check allotment
- Paytm IPO reveiw
One97 communications/Paytm Details
One97 Communications, formerly known as Paytm, is one of the leading mobile payments and UPI platforms in the country. It is also one of the biggest startups in India. Paytm has a user base of about 350 million, out of which 50 million active users, 20 million registered merchant partners, and payments bank has 60 million accounts.
Paytm IPO opening on 8th Nov 2021 of ₹18300 crores via IPO that comprises fresh issue of ₹8300 crores and the offer for sale (OFS) of ₹10000.
What are the Risk factors in Paytm IPO
1. Paytm has a history of net losses with declining revenue, The company also expects further losses in the future.
2. Paytm have experienced negative cash flows in prior years
3. Paytm has Rs 52.20 Crore contingent liabilities, if materialized may harm the company
4. They are highly dependent on their payment services, any harm to it can cause harm to the whole company
5. In the future if payment processing charges payable to financial institutions and card networks increase significantly, the company may not be able to pass these higher charges to merchants or customers and the company may not be profitable
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What are the Competitive strengths in Paytm IPO
1. Paytm has built strong brand value over the years and also built trust among the users
2. Paytm is one of India’s leading digital payment service platforms.
3. Paytm has a brand value of US$6.3 billion.
4. Paytm has a huge customer base with a total of 333 million total customers
What are the Products and services offered by Paytm?
Services on the Paytm app are Recharge and Bill Payments, Send money (Money Transfer), Pay (In-Store Payments), Travel ticketing, Entertainment ticketing, Mini-apps Store, Games, Paytm First Subscription, Digital Banking (including Paytm Wallet, FASTag), Lending, Wealth Management, Insurance
Financial track record of Paytm
| Particulars | FY19 | FY20 | FY21 | Qtr Ending 30-Jun-21 |
|---|---|---|---|---|
| Total Assets | 87,668.0 | 1,03,031.0 | 91,513.0 | 94,590.0 |
| Revenues | 35,797.0 | 35,407.0 | 31,868.0 | 9,480.0 |
| Profit After Tax | -42,309.0 | -29,424.0 | -17,010.0 | -3,819.0 |
| Profit % | -118.19% | -83.10% | -53.38% | -40.28% |
Objective behind IPO
1. Growing and strengthening of Paytm ecosystem, including through acquisition and retention of consumers and merchants and providing them with greater access to technology and financial services
2. Investing in new business initiatives, acquisitions, and strategic partnerships; and
3. General corporate purposes.
Paytm IPO GMP today
As of 9th Nov 2021, The grey market premium is Rs 80
Paytm IPO is overpriced or underpriced?
As the company is reporting negative EPS consistently over the past years the P.E is not possible to compute.
Hence, It is hard to say whether it is over or underpriced
Paytm IPO open date & close date
Open date: 08-Nov-21, Close date: 10-Nov-21
Paytm IPO IPO Finalization of Allotment, refund date & listing Date
Allotment date: 15-Nov-21, Refund date: 16-Nov-21, Listing date: 18-Nov-21
Paytm IPO check allotment
Paytm IPO allotment can be checked through their registrar http://www.linkintime.co.in
Paytm IPO reveiw
Paytm has a good brand value and strong customer base, but still, its revenue and net profit are consistently decreasing and the company also expects further losses in the near future
So, Investment in a loss-making company is not a good option but looking at its IPO craze and brand value it may give listing gains.
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Disclaimer: I am not SEBI registered, Kindly do your own research before any decision, my views are for educational purpose only
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