One97 Communications, Paytm’s parent company, will be launching its IPO on 8 November 2021, Monday. The Noida-based company is seeking a valuation of $20 billion at a price band of Rs. 2,080-2,150 per share. For individuals who are interested in applying for this upcoming initial share sale, it is vital to know the details of the public issue.
Remember These Vital Details of Paytm IPO
Previously, Paytm was aiming to raise funds worth Rs. 16,600 crores via its IPO. However, the company has revised the amount to Rs. 18,300 crores owing to increased interest from investors.
Following this revision, its public issue will continue to comprise fresh issuance of equity shares amounting to Rs.8,300 crores and a secondary issue worth Rs. 10,000 crores. As part of the secondary issue, existing shareholders of the company will be offloading their equity shares via an offer for sale. As per the RHP filed with the capital market regulator, Ant Group and Alibaba will be selling equity shares worth Rs. 4704 crores and Rs. 784 crores, respectively.
The company aims to achieve the following objectives by utilising the net proceeds from its initial public offering:
- Ensuring the expansion and strengthening of the Paytm ecosystem via customer retention, acquisition while providing consumers and merchants with increased access to financial services as well as technology
- Raising funds required for new acquisitions, strategic collaborations and business initiatives
- Fulfilment of general corporate purposes
Here’s a table showing what portion of the public issue is reserved for each investor category:
|Investor Segment||Allocated Portion|
|Retail Individual Investors (RII)||10%|
|Non-institutional Investors (NII)||15%|
|Qualified Institutional Buyers (QIBs)||75%|
In addition, individuals must keep the following information regarding Paytm IPO in mind:
- Issue Type: Book builtissue
- Face Value: 1 per equity share
- Listing on: BSE aswell as NSE
- Minimum Order Quantity: 6 shares
- Market Lot: 6 shares
- IPO closes on: 10 November 2021
In case investors are looking to apply for the initial public offering of Paytm, it’s essential to consider various aspects regarding the company. We’ll discuss two of them in the next section.
Key Strengths of Paytm
Here are some noteworthy strengths of Paytm that gives it a competitive advantage in the industry:
- Paytm offers one of the best platforms for digital payments in India.
- This company has managed to establish a strong identity. According to Kantar BrandZ India Report 2020, Paytm’s brand value encompasses $6.3 billion.
- Paytm’s app provides individuals with an extensive range of digital payment services via their smartphones.
- This company’s customer base includes over 20 million registered users.
Here are some key figures that investors must consider to get an idea regarding this company’s financial position:
|Financial Year||Overall Revenue (Rs.)||Total Assets (Rs.)||Profit after Tax (Rs.)|
|2018-19||35,797 million||87,668 million||(42,309 million)|
|2019-20||35,407 million||103,031 million||(29,424 million)|
|2020-21||31,868 million||91,513 million||(17,010 million)|
Taking into account the competitive strengths of Paytm, it appears that the company is in a favourable position in the market. That said, if you wish to apply for its public issue, make sure to consider various factors, such as opportunities, financials and weaknesses of the company before placing the IPO order. You can get these details along with a brief competitive analysis from here.
Frequently Asked Questions
- When is the listing date of Paytm IPO?
The listing date of Paytm IPO is 18 November 2021.
- Which entities are the lead managers for Paytm IPO?
The merchant bankers who have been appointed for Paytm IPO are as follows:
- P. Morgan India Private Limited
- HDFC Bank Limited
- Axis Capital Limited
- Goldman Sachs (India) Securities Private Limited
- Citigroup Global Markets India Private Limited
- Morgan Stanley India Company Pvt Ltd
Besides these companies, ICICI Securities Limited is the lead manager for the initial public offering of Paytm.
- Who is the registrar for Paytm IPO?
The registrar for the initial share sale of Paytm is Link Intime India Private Ltd.