Paytm IPO Review – Date, Price, GMP | One97 Communications

You all know Paytm is one of the largest digital service-providing companies. About 337 million customers and 21 merchants use its platform to pay or receive money on shopping. Hence, you can understand how big One97 Communications is. 

Paytm has announced that it is coming with India’sIndia’s most extensive initial public offering soon. The expected date of Paytm IPO is November 8, 2021; hence, you were waiting for one of the best IPOs. In that case, you can consider IPOs of Paytm as this company is valuing about $19.9 billion.

Paytm IPO Review

Paytm IPO Details

ParticularDetails
Paytm IPO starting date8 November 2021
Paytm IPO closing date10 November 2021
Allotment date15 November 2021
Refund payment date16 November 2021
Share credit to Demat account17 November 2021
Listing date of IPO18 November 2021
Type of issueIPO
Face valueRs1 per share
Per IPO share priceRs2080-Rs2150
Minimum market lot6
Maximum market lot15
Minimum IPO lot priceRs12,840-Rs12,900
Maximum IPO lot priceRs1,87,200-Rs1,93,500
IPO available for fresh issueRs8,000 Crore
IPO available for saleRs10,000 Crore

What is Paytm?

Paytm is a company that provides financial services for consumers and merchants. You can recharge, pay online, send money, and do several other tasks using this platform. It was established in 2010, and it used to be used as a recharge platform. But later, it added several features to the platform and started providing features like air ticket booking and others. 

Now the users can also invest in mutual funds and NPS. Also, you can purchase things using Paytm Mall. And there are tons of other features available with this platform, as you mostly know about.  

Financial Details of Company

YearsSales Or Revenue (In Crore)Profit/LossEarning Per Share
June 2021649.4-381.9-6
June 2020948.0-284.4-5
March 20213186.8-1701-28
March 20203540.7-2942.4-49
March 20193579.7-4225.6-28

Benefits of Investing in Paytm IPO

Paytm is a well-known brand and is handled by One97 Communications. And there can be several strong reasons to invest in its upcoming IPOs. Below are some key points that show its strengths. 

  • It is one of the most trusted and highly recognized brands across India. 
  • Most Indian merchants and customers use Paytm for online transactions. 
  • The company keeps working on advancing its current technology using an innovative approach. 
  • Paytm has a brilliant team of experienced promoters and managers. 
  • Millions of people use its online ecosystem, and it is also scalable.  

Challenges of Investing in Paytm IPO

However, many things show several challenges that an investor can face. Because for the last few years, the company is not doing so well and facing many obstacles.

  • This company is dependent on the existing customers and their repeat transactions. 
  • The company mainly earns through its payment transfer services.
  • It also impacted severely due to the COVID-19 pandemic. 
  • Paytm works on its technology infrastructure, but still, it needs to work a lot. 
  • It is also dependent on the financial institutions who work as a partner of it.
  • For many years this company has been facing a lot less; however, the loss amount is decreasing slowly. In the future, you might earn some decent profit. 
  • It is also dependent on the third parties for providing customer services.  

What is The Size of Paytm IPO?

As per the latest report, One97 Communication, the holding company of Paytm, will come for Rs18300 crore by issuing IPOs. And the ideal investors can subscribe to one of its IPOs from November 8 to 10. Also, the expected fixed price per share under IPO would be around Rs2080 to Rs2150. But the investors may require to purchase these IPOs under the lot size of at least six shares. 

However, 75% of these Paytm IPOs are reserved for the QIB, whereas 15% will be allowed to noninstitutional buyers. And the last 10% of Paytm IPOs are available for retail buyers. Earlier, Paytm thought of raising funds for Rs16,600 crore, but finally, it increased by an additional Rs1700 crore. 

How Much Will The Existing Investors Get in Paytm IPO? 

Some portion of the upcoming Paytm IPO will also distribute among the current investors. About Rs8300 crore will be utilized to issue fresh equity in the market. In comparison, the remaining Rs10000 crore shares will be utilized to distribute among the existing investors. 

The Antin Netherlands holding BV, SAIF III Mauritius Co. Ltd, and Softbank’s SVF Panther (Cayman) Ltd will get Rs4704.3 crore, 1327.6, and 1689 crore, respectively. Moreover, the founder of Paytm, Mr. Vijay Shekhar Sharm, will be getting about Rs402.7 crore from this Paytm IPO. 

Existing InvestorIPO Share (In Crore)
Antin Netherlands holding BV4704.3
SAIF III Mauritius Co. Ltd1327.6
Softbank’s SVF Panther (Cayman) Ltd1689
Mr. Vijay Shekhar Sharma402.7

So, this is how the IPO of Paytm will be distributed among these existing investors of the company.

Why is Paytm Issuing IPOs?

You might be thinking Paytm is already a large company in India. But why is it issuing IPOs to raise its funds? So, to answer this, the parent company of Paytm One97 said that they would be utilizing these funds to make the ecosystem of Paytm more strong. So it can capture more customers and retain the existing users. It also highlighted that they would attract and retain customers by offering discounts, cashback, and other benefits.

They will also acquire some new companies to build some strategic partnerships. As Paytm did with Urja Money Pvt Ltd, which is a loan management company.

FAQs

What is Paytm IPO Price?

The expected price of Paytm IPO is going to be anywhere from Rs2080 to Rs2150 per share. Hence, you would have to bear up to Rs2150 per share under this upcoming IPO. However, there is no option to buy a single share; hence you need to purchase the shares under the minimum lot size.

What is The Minimum Lot Side of Paytm IPO?

The minimum lot size under Paytm’s initial public offering is six. Hence, you need to purchase at least six shares of Paytm under this IPO.

How Much Money Do You Have to Invest in Paytm IPO?

If you wish to invest in this initial public offering of Paytm, you need to purchase at least six shares of it. Because one lot contains six shares, and one share costs Rs2080 to Rs2150. Hence, it will cost you Rs12,480 for every single lot or every six shares.

What is Paytm IPO Date?

The bidding date is going to start from November 8 to 10 to buy IPOs of Paytm. Thus, you have to bid from November 8, 2021, to November 10, 2021.

Where Will The IPO of Paytm List?

The Paytm IPOs will list in both National Stock Exchange and Bombay Stock Exchange. Hence, you can invest in any from the BSE and NSE as per your suitability.

Conclusion

Paytm is looking at this opportunity as a great chance to make its platform more advanced. So, again it can attain its significant position in the financial market. If you also want to purchase IPOs of leading companies like Paytm. Then you can consider these IPOs to invest; however, make sure to calculate the risk and return ratio.

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