5 things to know about the Paytm IPO
5 things to know about Paytm IPO
Hello Friends and welcome to another exciting IPO special podcast by Angel Broking.
Dost IPO shabd sun ke investors khush ho jate hai because they feel ki ab mauka hai saste mein shares kharidne ka. They feel like ‘never-again’ wala price mein shares buy karenge aur phir jab company stock market pe list ho jayega, toh share price jaldi increase hoga aur in ko earnings mil jayegi.
This kind of expectation and speculation is what makes IPOs exciting. Known name companies ka IPOs aur exciting hote hai. Ek newly well-known name, jiska product concept bhi advanced hai… jab unka IPO aa jata hai, investors toh nariyal phodne ke liye tayaar rehte hai. It is a matter of great excitement.
The Paytm IPO falls in the third category. The IPO has made headlines and investors are thrilled. Google searches for Paytm IPO have multiplied 10 times around 13 June onwards when the news of the IPO first emerged. Toh chalo, let's wrap our heads around what might be the noisiest IPO of the year.
#1 IPO amount:
The Paytm IPO is expected to be for a huge 3 billion dollars, which amounts to Rs 21,000 to Rs 22,000 crore. Iss mein se, 1.6 billion dollars - which is about Rs 12,000 crore - is to be new stock, while the rest will be an offer for sale by existing shareholders. Yeh ab tak finalize nahi hua hai lekin Paytm ne apne shareholders ko intimate kiya hai ki July 12 pe extraordinary shareholders meeting rahega jisme yeh point discuss hoga.
#2 Why is the Paytm IPO such a big deal?
Is Mein chaar baatein hain, chaliye ek ek karke dekhte hain. Pehli baat: This is one of the largest IPO ever on the Indian stock market. Nobody has come close to this at least pichle 11 saal se, itna bada IPO nahi dekha gaya hai. 11 saal pehle, in 2010, Coal India kar ke ek company ne Rs 15,000 crore ka IPO kiya tha.
Dusri baat: Being a new and popular concept and being seen as the "future" goes a long way in creating a buzz around anything. The concept of digital wallet payments picked up tremendously amidst covid and logically, investors see it as becoming even more popular in an increasingly digital world.
Third reason for it being such a big deal: E- wallet walon mein se Paytm is among the top brass. Paytm ka market share 12% hai aur unke aage hai sirf PhonePE aur Google Pay.
Fourth: Brands that are known to the aam aadmi typically witness a larger buzz around their IPO. Paytm toh abh "household name" ban gaya hain. Sab koi Paytm use harte hai, nahi toh kam se kam they have heard the word/name Paytm.
#3 When is the Paytm IPO slated for and how should investors gear up?
Paytm IPO shayad November mein aaega although abhi kuch finalise nahi hua hai. Shareholders extraordinary meeting ke baad hi, Paytm apna Red Herring Prospectus iske baad file kar lenge. The Red Herring Prospectus is filed with SEBI - the Securities Exchange board of India, the regulator - and then they must wait until SEBI gives them the nod to go ahead with the IPO. Tayaar rehne ke liye investors should study Paytm's Red Herring Prospectus and it's past financials in order to evaluate its track record.
#4 Who will be handling the Paytm IPO
Abhi filhal secret sources se hi information bahar aa raha hai about this headline-hogging IPO. The banks who have been hired are reportedly
#5 Paytm ke existing investors/ promoters kaun hai?
Current investors in Paytm include
SoftBank Group Corp., Jinka 20 % stake hai
Berkshire Hathaway Inc. Jinka 20 % stake hai
Ant Group Co, a subsidiary of Alibaba jinka 37 % stake in the company hai - the largest shareholder
founder Vijay Shekhar Sharma (who is likely going to be moving away from being promoter and holds a little under 15% stake)
Already company ke hazaar investors hai toh saare ko toh name nahi kar sakta… mostly institutional investors hi hai aur kai employees… ex employees… Anyways these 4 are the most notable ones.
Doston all stock market investments, including IPOs are subject to market risks. Always be aware of your risk exposure. Always calculate and understand your risk appetite. Aur ha… hamesha uss capital se invest karna jo aapne save kiya hai after considering the ready money you will need for daily living expenses. Kya pata - what if the share price after being listed takes some time to pick up. Your money will be stuck. You don't want to end up having to sell because you need liquid cash.
Before we end, let’s quickly run through some of the common FAQs-
What are the exact dates of the PayTm IPO
Yet to be announced - possibly November
What is the proper company name of Paytm
One97 Communications Pvt. Ltd.
What will be the share price of Paytm
This will be announced closer to the date of the IPO
What rank does Paytm hold among its peers?
Paytm ranks third among the payment wallets in India.---
Chaliye doston, that’s it for today. By now you would have realized ki IPOs kitne exciting ho sakte hain. Excitement ko impulse ke saath combine na karein, always be calm and remember to do your own research as well. Aise aur educational content ko follow karein and stay updated. Chaliye fir milenge.
Until then goodbye and happy investing.
Investments in the securities markets are subject to market risks. Read all the related documents carefully before investing.