Paytm IPO

 

Paytm IPO

Incorporated in 2010, Paytm is a Noida-based company and a subsidiary of One97 Communications. Originally, this company was established as an online mobile recharge platform. That said, over the past few years, it has transformed its business model.

Currently, it is India’s leading online mobile payments and commerce platform, which allows consumers to execute cashless transactions via the Paytm App. Registered merchants can utilise the platform to offer their products and online payment solutions. Moreover, they can use it for advertising purposes.

Apart from offering UPI payments and online bill payments, the fintech company enables individuals to invest in digital gold, mutual funds and buy insurance. Furthermore, users of the app can make cashless payments at stores. Currently, this company generates revenue via escrow accounts, cross-selling and commissions.

Paytm IPO Objectives

- To reinforce the company’s ecosystem via the acquisition and retention of more customers, by giving them access to technology as well as financial services
- Fulfilment general corporate demands
- Financing strategic collaborations, mergers and acquisitions besides new business initiatives

Paytm IPO - Details

As per Paytm’s draft red herring prospectus (DRHP) filed with SEBI, the issue size of Paytm IPO will be Rs. 16,600 crores or $2.2 billion. Besides fresh issue worth Rs. 8,300 crores, it will comprise an offer for sale of the same proportion.

Here are some crucial details regarding the company’s initial public offering that investors must make sure to keep in mind.

Opening Date: Nov 8, 2021

Closing Date: Nov 10, 2021

Price Band: ₹ 2080 - ₹ 2150 per equity share

Issue Size: ₹ 18,300 Cr

Face Value: ₹ 1, per equity share

Market Lot: 6 shares

Listing at NSE, BSE

Paytm IPO Important Dates

IPO Open Date	Nov 8, 2021
IPO Close Date	Nov 10, 2021
Basis Of Allotment Date	Nov 15, 2021
Initiation Of Refunds	Nov 16, 2021
Credit Of Shares To Demat ACcount	Nov 17, 2021
IPO Listing Date	Nov 18, 2021

Why Should You Invest in Paytm IPO?

Paytm was the first company in India to introduce digital payments and mobile wallet services. Accordingly, it enjoys a first-mover advantage. It has also continued to diversify its offerings, and today it boasts of a vast portfolio of services. This aspect, combined with the company's lucrative offers, has been instrumental in expanding its customer base over the years.

Since the outlook in relation to digital payment providers appears positive, especially in the long term, investing in Paytm IPO could prove to be beneficial. Accordingly, investors might want to consider this company’s initial public offer once it is open for subscription.

Financial highlights

Here is a tabular representation of a few essential financial highlights of Paytm from FY18-19 to FY20-21

For The Year Ending	Total Assets (In Million)	Total Revenue (In Million)	Profit After Tax (In Million)
31 March 2019	Rs. 87,668	Rs. 35,797	(Rs. 42,309)
31 March 2020	Rs. 103,031	Rs. 35,407	(Rs. 29,424)
31 March 2021	Rs. 91,513	Rs. 31,868	(Rs. 17,010)

How to apply for Paytm IPO?

You can apply for the Paytm IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel One account. Proceed to book Paytm IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you’re a new investor open demat account for free with Angel One using link https://tinyurl.com/k79bdf4z to begin your investment journey.

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