Paytm IPO (One 97 Communications Limited) is going to hit Dalal street on 08 November 2021. One 97 Communications Limited aka the Paytm IPO is going to be India’s biggest IPO. it will beat Coal India’s IPO of the issue size ₹15,000 crore IPO. Paytm IPO is coming with a massive issue size of ₹18,300 crores.
Also read: IPO List 2021: a complete list of IPOs in 2021
One 97 Communications Limited (Paytm)
The company is India’s leading digital ecosystem for consumers and merchants, according to RedSeer. It offers payment services, commerce and cloud services, and financial services to 333 million consumers and over 21 million merchants registered with it, as of March 31, 2021. Its two-sided (consumer and merchant) ecosystem enables commerce, and provides access to financial services, by leveraging technology to improve the lives of the consumers and help the merchants grow their businesses.
Paytm was launched in 2009, as a “mobile-first” digital payments platform to enable cashless payments for Indians, giving them the power to make payments from their mobile phones. Starting with bill payments and mobile top-ups as the first use cases, and Paytm Wallet as the first Paytm Payment Instrument, it has built the largest payments platform in India based on the number of consumers, number of merchants, number of transactions, and revenue as of March 31, 2021. As per the Kantar Brand Z India 2020 Report, the “Paytm” brand is India’s most valuable payments brand, with a brand value of USD 6.3 billion.
Paytm Super App
It has created a payments-led super-app, through which it offers the consumers innovative and intuitive digital products and services. It offers the consumers a wide selection of payment options on the Paytm app, which includes (i) Paytm Payment Instruments, which allow them to use digital wallets, sub-wallets, bank accounts, buy-now-pay-later and wealth management accounts, and (ii) major third-party instruments, such as debit and credit cards and net banking.
On the app, it enables the consumers to transact at in-store merchants, pay their bills, make mobile top-ups, transfer money digitally, create and manage their Paytm Payment Instruments, check linked account balances, service city challans and municipal payments, buy travel and entertainment tickets, play games online, access digital banking services, borrow money, buy insurance, make investments and more.
It helps the merchants grow their business by giving them solutions that allow them to accept payments, acquire and retain consumers, improve their business operations, and access financial services. Merchants can use in-store and online payment solutions to accept payments through Paytm Payment Instruments as well as major third-party payment methods. To help them acquire and retain customers, and create demand, it offers them services like selling tickets to customers, advertising, mini-app listings, channel, and loyalty solutions. In addition to helping the merchant ecosystem facilitate more commerce, it also provides software and cloud services that allow large, medium, and small merchants to improve their business operations and access important financial tools such as banking, wealth, and credit facilities.
Objects of the Issue
- Growing and strengthening Paytm ecosystem, including through acquisition and retention of consumers and merchants and providing them with greater access to technology and financial services – ₹ 4,300 Crores
- Investing in new business initiatives, acquisitions, and strategic partnerships – ₹ 2,000 Crores
- General corporate purposes
Competitive strengths
- India’s leading digital payment service platform.
- Strong brand identity with a brand value of US$6.3 billion.
- Large customer base with 333 million total customers, 114 million annual transacting users, and 21 million registered merchants.
- Paytm Super-app to access a wide range of digital payment services over mobile phones.
Basic details about the company
| Full name | One 97 Communications Limited |
| Sector | Information Technology |
| Industry | E-commerce |
| Company Website | www.paytm.com |
Dates to remember
| IPO Open | 08 November 2021 |
| IPO Close | 10 November 2021 |
| Basis of Allotment | 15 November 2021 |
| Refunds date | 16 November 2021 |
| Credit to Demat Account | 17 November 2021 |
| Listing Date | 18 November 2021 |
IPO details
| Issue type | Book Building |
| IPO issue size | ₹18,300 Cr |
| Fresh Issue | ₹8,300 Cr |
| Offer for sale | ₹10,000 Cr |
| Face value | ₹01 per equity share |
| Price band | ₹2080 to ₹2150 per equity share |
| Retail Allocation | 10% |
| Lot size | 06 Shares |
| Minimum application | 1 Lot-06 Shares |
| Maximum application | 15 Lots- 90 Shares |
| Minimum application amount | ₹12,900 |
| Maximum application amount | ₹193,500 |
| Listing Exchange | BSE & NSE |
Paytm‘s Financial Performance (in INR crore)
| FY2019 | FY2020 | FY2021 | |
| Revenue | 3,579.7 | 3,540.7 | 3,186.8 |
| Expenses | 7,743.9 | 6,138.2 | 4,783.0 |
| Net income | (4,235.5) | (2,943.3) | (1,704.0) |
| Margin (%) | (118.3) | (83.1) | (53.5) |
Paytm IPO Valuation (as of FY2021)
| Earnings Per Share (EPS) | -₹28 |
| Return on Net Worth (RONW) | -26% |
| Net Asset Value (NAV) | ₹108 per share |
Company Promoters
It is a professionally managed company and doesn’t have an identifiable promoter in terms of SEBI ICDR Regulations and the Companies Act. Consequently, there are no members forming part of the ‘promoter group’ in terms of the SEBI ICDR Regulations.
Paytm IPO Lead Manager(s)
- Axis Capital Limited
- Citigroup Global Markets India Private Limited
- Goldman Sachs (India) Securities Private Limited
- HDFC Bank Limited
- ICICI Securities Limited
- J.P. Morgan India Private Limited
- Morgan Stanley India Company Pvt Ltd
Paytm IPO Registrar
Link Intime India Private Limited
C-101, 1st Floor,
247 Park Lal Bahadur Shastri Marg,
Vikhroli (West) Mumbai – 400 083
Phone: +91 22 4918 6200
Fax: +91 22 4918 6195
Email: paytm.ipo@linkintime.co.in
Website: http://www.linkintime.co.in
One97 Communications Contact Details
One97 Communications Limited
First Floor, Devika Tower, Nehru Place,
New Delhi 110 019, India
Phone: +91 11 2628 0280
Email: compliance.officer@paytm.com
Website: www.paytm.com
Paytm IPO Allotment Status
Paytm IPO allotment will be available on Link Intime’s website.
Click on this link to get the allotment status.
Final thoughts
Paytm IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make a wise decision.
Happy Investing