Paytm IPO Day 2 highlights
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 48 percent on November 9, the second day of bidding, receiving bids for 2.34 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.23 times, while the reserved portion of non-institutional investors was subscribed 5 percent, and qualified institutional buyers have put in bids for 46 percent shares of the portion set aside for them.
Paytm IPO Day 2 updates:
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 48 percent on November 9, the second day of bidding, receiving bids for 2.32 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.22 times, while the reserved portion of non-institutional investors was subscribed 5 percent, and qualified institutional buyers have put in bids for 45 percent shares of the portion set aside for them.
Indian Payment System
Consumers are rapidly switching to digital payments as it provides simple, safe and convenient ways to transfer money across accounts. Similarly, for merchants, acceptance of payments in digital form has increased significantly. Digital payments market size estimated by value at ~$20 trillion with 43 billion transactions in FY21. Digital payments by value are expected to grow at a CAGR ~17% to reach ~45 trillion over the forecasted period of FY21-FYE26.
Digital payments by volume are expected to grow at a CAGR ~30% to reach ~160 billions over the forecasted period of FY21-FYE26. The growth is mainly driven by Mobile payments which includes mobile wallet and UPI.
Paytm IPO Day 2 updates
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 47 percent on November 9, the second day of bidding, receiving bids for 2.29crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.19 times, while the reserved portion of non-institutional investors was subscribed 4 percent, and qualified institutional buyershave put in bids for 45 percent shares of the portion set aside for them.
Anand Rathi Assigns Subscribe Rating
"At the upper end of the IPO price band, One 97 Communications is offered at P/B of 9.5x with a market capitalization of Rs 1,39,378.8 crore. The company benefits from both customer side and merchant side by providing payment and other services through Paytm app, the company further aims to expand its reach and benefit from scale which is challenging for other players," says Anand Rathi.
"The company reported contribution profit of Rs 363 crore and EBITDA loss of Rs 1,655 crore in FY21. Given that the company’s ecosystem allows it to address large market opportunities, scale and reach, product, technology and leadership - we give this IPO a subscribe (long-term) rating," the brokerage says.
Paytm IPO Day 2 updates
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 39 percent on November 9, the second day of bidding, receiving bids for 1.88 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.17 times, while the reserved portion of non-institutional investors was subscribed 4 percent, and qualified institutional buyershave put in bids for 30 percent shares of the portion set aside for them.
Paytm Is Good Bet For Listing Gains, says Analyst
"PaytmIPO is not only the largest ever IPO in India, but it also marks the entry of a disruptive Fintech innovator into the Indian public market. The new economy of fintech, digital-first space will have the highest growth potential in the coming few years in India with penetration of banking and digitization both multiplying.PaytmIPO will allow the Indian public markets to participate in this growth journey," saysSonamSrivastava of Wright Research.
She further says, "Paytmhas a colossal scale, brand value, and an ecosystem of interconnected digital fintech businesses in payment, credit, banking, wealth management, and e-commerce that can grow with synergy. However,Paytmis a growth company that is loss-making and would continue to be so.Paytmalso faces stiff competition in the Payments space from UPI and Google and its aspirational foray into financial services from established players."
Given the IPO frenzy that we see in India with an average listing gain of 44 perrcent, this flag-bearing IPO is a good bet for listing gains, she advised.
Paytm IPO Day 2 updates
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 37 percent on November 9, the second day of bidding, receiving bids for 1.80 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.13 times, while the reserved portion of non-institutional investors was subscribed 3 percent, and qualified institutional buyershave put in bids for 29 percent shares of the portion set aside for them.
Arihant Capital Markets Says Subscribe
Paytm IPO
"At the upper band of Rs 2150, the issue is valued at a P/BV of 21.3x FY21 P/BV and 49.7x FY21 P/sales (post issue). Rising pace of digitalization continues to present significant opportunity to grow the user base for online transactions for bill payments, shopping , entertainment, and other financial needs. Monetizing the large installed customer/merchant base of Paytm for broader financial service offerings, such as credit, wealth, and insurance will is the key opportunity for the company and it would lead to the profitability going forward. Valuation of the company is on higher side. Thus, we recommend investor to “subscribe this issue for listing gain," says Arihant Capital Markets.
Paytm Financials
Paytm IPO Day 2 updates
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 37 percent on November 9, the second day of bidding, receiving bids for 1.78 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.11 times, while the reserved portion of non-institutional investors was subscribed 3 percent, and qualified institutional buyershave put in bids for 29 percent shares of the portion set aside for them.
Paytm IPO Day 2 updates
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 37 percent on November 9, the second day of bidding, receiving bids for 1.77 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.10 times, while the reserved portion of non-institutional investors was subscribed 3 percent, and qualified institutional buyershave put in bids for 29 percent shares of the portion set aside for them.
Analyst's Take on Paytm IPO
"At the upper end of the price band,Paytmis valued at 49.7x its FY21 revenues. While valuations may appear to be expensive,Paytmhas become synonymous with digital payments through mobile and is the market leader in the mobile payment space. Patym is well positioned to benefit from the exponential 5x growth in mobile payments between FY2021 – FY2026 and hence believe that the valuations are justified. We recommend investors to subscribe to the issue," says JyotiRoy- DVP- Equity Strategist at Angel One.
Paytm IPO Day 2 updates
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 36 percent on November 9, the second day of bidding, receiving bids for 1.74 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.07 times, while the reserved portion of non-institutional investors was subscribed 3 percent, and qualified institutional buyershave put in bids for 29 percent shares of the portion set aside for them.
Canara Bank Securities' View on Paytm IPO
"The company exhibits substantial growth in user base and gross merchandise value since its inception within the Fin-tech sector. Moreover, the business is scalable due to high convenience of digital banking. However, the issue is available at P/B of 49.74x for FY21 which is expensive. However, we recommend Subscribe for long term to the issue," said the brokerage.
One97 Communications (Paytm) offers payment, commerce, cloud, and financial services through its payment app. The high penetration in internet and smartphone users has supported the company to grow at faster pace due to attractive user interface byPaytmapp. The company has market share of approximately 40% in the overall payments transaction volume, and 65% – 70% market share of wallet payments transaction in India as of FY2021.
Paytm IPO Day 2 updates
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 36 percent on November 9, the second day of bidding, receiving bids for 1.73 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.05 times, while the reserved portion of non-institutional investors was subscribed 3 percent, and qualified institutional buyershave put in bids for 29 percent shares of the portion set aside for them.
Valuation Criteria for Paytm IPO
"Paytm and global peers are best valued in terms of Price to Sales multiple. One could compare Paytm to some of the other listed payment companies globally like Paypal (Enterprise Value (EV)/Revenue of 15x), Ant Group (parent company), Mastercard (EV/Revenue-24x), Visa (EV/Revenue-25x) etc," said Divam Sharma of Green Portfolio.
"Paytm's valuation (46.1x FY21 EV/Revenue) is at a steep premium over the 17x revenue multiple sought by China's Ant Group in its IPO last year," he added.
Paytm IPO Day 2 updates
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 36 percent on November 9, the second day of bidding, receiving bids for 1.71 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.04 times, while the reserved portion of non-institutional investors was subscribed 3 percent, and qualified institutional buyershave put in bids for 29 percent shares of the portion set aside for them.
Paytm IPO Day 2 updates
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 35 percent on November 9, the second day of bidding, receiving bids for 1.7 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.03 times, while the reserved portion of non-institutional investors was subscribed 3 percent, and qualified institutional buyers have put in bids for 76.7 lakh shares against 2.63 crore shares set aside for them.
Paytm IPO Day 2 updates
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 35 percent on November 9, the second day of bidding, receiving bids for 1.68 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 1.01 times, while the reserved portion of non-institutional investors was subscribed 3 percent, and qualified institutional buyers have put in bids for 76.7 lakh shares against 2.63 crore shares set aside for them.
Paytm IPO Day 2 updates
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 34 percent on November 9, the second day of bidding, receiving bids for 1.66 crore equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 98 percent, while the reserved portion of non-institutional investors was subscribed 2 percent, and qualified institutional buyers have put in bids for 76.7 lakh shares against 2.63 crore shares set aside for them.
Paytm IPO Day 2 updates
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 21 percent on November 9, the second day of bidding, receiving bids for 1.02 lakh equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 93 percent, while the reserved portion of non-institutional investors was subscribed 2 percent, and qualified institutional buyers have put in bids for 16.79 lakh shares against 2.63 crore shares set aside for them.
Paytm IPO Day 2 updates
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 21 percent on November 9, the second day of bidding, receiving bids for 99.98 lakh equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 86 percent, while the reserved portion of non-institutional investors was subscribed 2 percent, and qualified institutional buyers have put in bids for 16.79 lakh shares against 2.63 crore shares set aside for them.
Harshad Chetanwala, Co-Founder of Mywealthgrowth.com:
IPO investing has become the buzzword in the last one year and many investors continue to apply for most of the IPOs as they look at it more from short term listing gain perspective or fear of missing out (FOMO). Retail investors should follow a cautious approach particularly for IPO investing and if possible try to stay away from the noise. Some of these companies do offer unique propositions and have a strong business case in India.
Paytm do enjoy a significant presence in the segment. However, one has to evaluate multiple aspects like the prospect and strengths of the business, plans of promoters after IPO, utilization of capital and valuations of the IPO before deciding on their investment in IPO. Investors can consider some of these factors and then decide on which IPO may suit their profile and work for them in future.
Paytm IPO Day 2 updates
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 20 percent on November 9, the second day of bidding, receiving bids for 95.94 lakh equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 86 percent, while the reserved portion of non-institutional investors was subscribed 2 percent, and qualified institutional buyers have put in bids for 16.78 lakh shares against 2.63 crore shares set aside for them.
Paytm IPO Day 2 updates
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 19 percent on November 9, the second day of bidding, receiving bids for 90.09 lakh equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 80 percent, while the reserved portion of non-institutional investors was subscribed 2 percent, and qualified institutional buyers have put in bids for 16.78 lakh shares against 2.63 crore shares set aside for them.
Paytm IPO will be a big event for SoftBank: Masayoshi Son
Fintech firm Paytm's billion-dollar share sale will be a big event for SoftBank, its large Japanese investor which has backed it across rounds, SoftBank chief Masayoshi Son said in an earnings call on November 8.
While its valuation of $20 billion makes Paytm among India's largest internet companies, it is still less than the $25 - $30 billion expectation that was rumoured for months leading up to the initial public offering (IPO).
When asked about the supposedly lower valuation, "I believe Paytm and its valuation will grow significantly. It depends on market condition and appetite. Either way, I believe that the valuation should be bigger than the cost of what we invested," Son said.
Paytm Payments Bank clocks all-time-high transactions, transaction values in October
: Paytm Payments Bank, the third-largest UPI player saw a 34 percent MoM rise in transaction values at Rs 80,508 crore with a 10 percent market share. The company also saw a rise in the number of transactions to 63 crore for the month, commanding a 15 percent share.
Paytm IPO subscription on Day 1
One97 Communications-owned Paytm opened its initial public offering for subscription on November 8. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 18 percent on November 8, the first day of bidding, receiving bids for 88.23 lakh equity shares against offer size of 4.83 crore shares. The portion set aside for retail investors was subscribed 78 percent, while the reserved portion of non-institutional investors was subscribed 2 percent, and qualified institutional buyers have put in bids for 16.78 lakh shares against 2.63 crore shares set aside for them.
