Everything You Need to Know About Paytm IPO

Paytm's IPO is a significant milestone in the company's history, marking a major step towards its expansion and growth. The IPO is expected to raise around ₹16,600 crores.

The company has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), which is the first step towards listing on the stock exchanges. This DRHP provides a detailed overview of Paytm's financials, business model, and future plans.

Paytm's revenue has grown significantly over the years, from ₹1,284 crores in 2016-17 to ₹3,647 crores in 2020-21. This growth is attributed to the increasing adoption of digital payments in India.

The IPO is expected to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Worth a look: Employee Stock Options Pre Ipo

Investing in Paytm IPO can be a great opportunity, especially considering the company's first-mover advantage in introducing digital payments and mobile wallet services in India.

Paytm has continued to diversify its offerings, boasting a vast portfolio of services that has helped expand its customer base over the years.

The company's lucrative offers have been instrumental in attracting and retaining customers, further solidifying its position in the market.

As the outlook for digital payment providers appears positive, especially in the long term, investing in Paytm IPO could prove to be beneficial.

Paytm's objectives for the IPO are focused on reinforcing its ecosystem, expanding its business through new initiatives and strategic partnerships, and fulfilling general corporate demands.

Here are the key objectives of Paytm IPO:

By investing in Paytm IPO, you'll be supporting the company's mission to provide better access to online payment services and expand its business through strategic partnerships and new initiatives.

Paytm's financial journey is a fascinating story of growth and challenges. The company's total assets have been steadily increasing, from Rs. 87,668 million in FY18-19 to Rs. 103,031 million in FY20-21.

The company's revenue has also been on the rise, with a total revenue of Rs. 35,797 million in FY18-19 and Rs. 35,407 million in FY20-21. However, the profit after tax has been a different story, with a loss of Rs. 42,309 million in FY18-19 and a loss of Rs. 29,424 million in FY20-21.

Here's a breakdown of Paytm's financial highlights:

In terms of the company's income, Paytm's payment and financial services segment has been growing steadily, from Rs. 1700 crore in 2019 to Rs. 2200 crore in 2021.

Paytm's IPO has raised concerns about the company's valuation, with analysts worried about whether it can justify its worth. The company posted a loss of 17 billion rupees ($230 million) last year on revenue of 31.86 billion rupees ($430 million).

The company's losses are expected to continue, with Paytm stating in its IPO filings that it may not achieve profitability in the future. This has led some to question whether the company's valuation is too high.

As the cost of data and internet in India falls, the company is counting on the growing number of smartphone users to boost its business. The number of smartphone users in India is expected to hit 800 million in the next five years.

Explore further: Paytm Users

The path to failure is often paved with overvaluation of the share price, as seen in Paytm's IPO. Overvaluation can lead to a decline in numbers.

Investors are cautious towards unlisted shares after Paytm's IPO result.

Receding Liquidity is a significant risk that can impact even the largest companies. The fall of Paytm's IPO is a prime example of this risk.

The company raised a massive ₹ 18,300 crores, but the market just wasn't ready for such a big number.

This was partly due to the decline of equity mutual funds schemes in recent months, which made FIIs cautious.

The risks and challenges of investing in Paytm's IPO are numerous. Overvaluation of the share price was a major concern, with the stock price issued at ₹ 2150 and eventually closing at ₹ 944.50.

The company's valuation was deemed "expensive" by several reports, which made investors cautious. This was partly due to the stock exchange's offer for sale, which was evaluated to ₹ 10,000 crores and covered more than 50% of the IPO value.

Paytm's losses have analysts worried about whether the company can justify its valuation. The company posted a loss of 17 billion rupees ($230 million) last year on revenue of 31.86 billion rupees ($430 million).

Mounting competition from companies like Facebook and Google, which have launched their own mobile payments systems using the Unified Payments Interface (UPI), is also a significant concern. This increased competition may make it harder for Paytm to retain its customers.

Paytm's own expectations of continued losses for the foreseeable future, as stated in its IPO filings, is another red flag. The company will continue to spend heavily on hiring, marketing, and building infrastructure, which may not lead to profitability anytime soon.

Here's an interesting read: Paytm Payments Bank

You can apply for the Paytm IPO through various methods. One way is to link your bank account to a reliable UPI ID and register it with your Angel One account.

To apply, you'll need to block the amount for allotment on the UPI app. If you're already a client of Angel One, you can apply directly for Paytm IPO by clicking here.

Alternatively, if you're a new investor, you can open a DEMAT account for free with Angel One to begin your investment journey.

Broaden your view: How to Apply for Ipo in Zerodha

The lead manager for Paytm's IPO is a group of reputable financial institutions. These include ICICI Securities Limited, J.P. Morgan India Private Limited, and others.

ICICI Securities Limited is one of the lead managers, bringing their expertise to the IPO process. Their involvement can provide investors with added confidence.

J.P. Morgan India Private Limited is also part of the lead manager team, contributing their knowledge and experience. This can be beneficial for investors who value their reputation.

Citigroup Global Markets India Private Limited, Morgan Stanley India Company Pvt Ltd, and Goldman Sachs (India) Securities Private Limited are also involved as lead managers. They will work together to ensure a successful IPO.

Here is a list of the lead managers for Paytm's IPO:

To apply for the Paytm IPO, you can link your bank account to a reliable UPI ID and register it with your Angel One account.

You can proceed to book Paytm IPO shares using the ID and confirm the payment on the UPI app, and block the amount for allotment.

If you're already a client of Angel One, you can apply directly for the Paytm IPO by clicking on the provided link.

If you're a new investor, you can open a DEMAT account for free with Angel One to begin your investment journey.

A fresh viewpoint: Close Paytm Money Account

The Paytm IPO had a relatively short open period, lasting from November 8th to November 10th, 2021. This allowed investors to apply for shares within a compact timeframe.

The IPO had a massive issue size of 18,300 Cr, which is a staggering amount of money. This demonstrates the scale and ambition of the Paytm IPO.

If you applied for shares, you had to do so in lots of 6, as the lot size was set at 6 shares. This is a standard practice in IPOs to make it easier for investors to participate.

The IPO was priced between ₹ 2080-2150 per equity share, which is a relatively high price point. However, the company's valuation and growth prospects may have justified this price.

The Paytm IPO was listed on both the NSE and BSE, giving investors a choice of exchanges to trade on. This is a common practice for large IPOs in India.

Broaden your view: Paytm Shares Price

Here are the key dates to remember:

The basis of allotment was announced on November 15th, 2021, which is an important date for investors who applied for shares.

The lots available for the Paytm IPO are quite interesting. You can buy a market lot of 6 shares, which costs ₹12,900.

If you're a small investor with a budget of between 2-10 lakhs, you can buy a minimum of 96 shares, which is equivalent to 16 lots, for a total of ₹2,06,400.

For big investors with a budget of over 10 lakhs, the minimum lot size is not specified in terms of shares, but the cost is ₹10,06,200.

Here's a breakdown of the lots available for the Paytm IPO:

Paytm has a banking license, which gives it an advantage over its competitors, making the processing of transactions smoother and lowering the chances of failure.

The company operates an e-commerce platform and mobile-based payments, and its revenue from operations in FY20 was Rs. 3,280.84 crores.

Paytm faces competition from other players in the market, including FreeCharge, MobiKwik, and new fintech applications such as PhonePe, GooglePay, and MobiKwik, which have led to a decline in Paytm's users.

Here's a comparison of Paytm and its competitors:

Paytm's financial services are a relatively new part of their business, but they're excited about the opportunity to be democratic with lending and reach a wide range of customers.

Deora mentions that a vast majority of Indians don't have access to formal credit, which presents a huge market in providing access to credit. They've partnered with banks, including HDFC, to offer services like personal loans and buy now, pay later options.

Paytm's focus on lending is particularly appealing to younger millennials who find traditional credit processes unsuitable.

The fintech space has become increasingly crowded, with new players entering the market and disrupting the status quo. This is evident in the decline of Paytm's user base.

Paytm was once a leading fintech company, but its popularity has waned with the release of new fintech applications. PhonePe, GooglePay, and MobiKwik are just a few examples of the many apps that have gained traction.

The competition has grown stronger over time, resulting in a decline in demand for Paytm. This is a clear indication that the company needs to adapt to the changing market landscape.

Paytm overlooked its supply and demand before issuing its stock price, which ultimately led to a downfall. This is a valuable lesson for companies looking to go public in the future.

In a competitive market, having a unique advantage can make all the difference. Paytm, for instance, has a banking license, which gives it an edge over its peers.

This license allows Paytm to process transactions smoothly and reduces the chances of failure. I've seen firsthand how a banking license can make a huge difference in the efficiency of a company's operations.

Here's a breakdown of the competition Paytm faces from other players in the market:

Paytm's revenue from operations in FY20 was significantly higher than that of its competitors.

Paytm IPO is a significant event for investors, and understanding the company's details is crucial. The company's name is One 97 Communications Limited, and it's the parent company of Paytm.

Paytm IPO has a massive issue size of ₹18,300 Cr, which is further divided into a fresh issue of ₹8,300 Cr and an offer for sale of ₹10,000 Cr. This is a huge amount, and it's essential for investors to understand the scale of the IPO.

The IPO price band is set between ₹2080-2150 per equity share, and the face value is ₹1 per equity share. This means that investors can buy a minimum of 6 shares as the lot size is 6 shares.

The IPO will be listed on both BSE and NSE, and the listing date is November 18, 2021.

Paytm is one of the leading digital payment platforms in India, with a strong brand presence and 333 million customers.

The company's digital payment platform, launched in 2009, enables customers to do cashless transactions using their mobile phones. People can use the Paytm app to pay bills, top-up their phones, buy insurance, make online fund transfers, check account balances, make investments, and more.

Paytm offers a variety of services, including payment services, commerce and cloud services, and financial services. Its services include making and receiving payments, ticketing, travel, entertainment, food delivery, lending, mobile banking, insurance planning, and wealth management.

The Paytm app provides various payment options, including digital wallet, bank accounts, wealth management accounts, debit cards, credit cards, and net banking. Merchants can use the app to scale their business by advertising, listing mini-apps, selling products, and more.

Here are some key highlights about Paytm's services:

Paytm's decline at the biggest IPO share sale will have a ripple effect on future Initial Public Offerings (IPOs).

Companies like MobiKwik are now taking a more cautious approach to their valuation.

The concept of "false" valuations has been clearly demonstrated by Paytm's decline, making pre-IPO companies more cautious about their financial standing.

Pre-IPO companies are now scared of being loss-making, as Paytm's IPO failure has shown that high valuations don't always translate to success.

A fresh viewpoint: Pre-IPO

The GMP prices shown for Paytm IPO are only related to the grey market, where the price is ₹-30 on 18-11-2021.

The IPO price is ₹2150, and the estimated listing price is ₹2120, which is a decrease of 1.40% from the IPO price.

The grey market price is not recommended for trading, as stated in the article.

On 18-11-2021, the GMP price was ₹-30, and the estimated listing price was ₹2120.

Additional reading: Rbz Jewellers Ipo Gmp