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.
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:
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:
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.
Here are some noteworthy strengths of Paytm that gives it a competitive advantage in the industry:
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.
The listing date of Paytm IPO is 18 November 2021.
The merchant bankers who have been appointed for Paytm IPO are as follows:
Besides these companies, ICICI Securities Limited is the lead manager for the initial public offering of Paytm.
The registrar for the initial share sale of Paytm is Link Intime India Private Ltd.
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