![]() KRChoksey notes that Paytm comes under the purview of RBI, SEBI & IRDA. The brokerage also noted that Paytm had negative cash flows from operating activities for FY19, FY20 and FY21. For example, in FY19, FY20, FY21, and in Q1FY22, revenue from payment and financial services accounted for 52.5%, 58.1%, 75.3%, 78.0% and 77.4% of its revenue from 46 operations. The company derived a majority of its revenue from transaction fees that it collects from merchants for their payment services. There are low barriers to entry within the industry and the cost of switching between offerings is low. ICICI Direct has opined that the company competes in markets characterised by vigorous competition, changing technology, changing merchant and consumer needs, evolving industry standards, and frequent introductions of new products and services. As of June 30, 2021, it offered payment services, commerce and cloud services, and financial services to 33.7 crore consumers and over 2.2 crore merchants, as per its DRHP. It offers consumers and merchants technology-led, easy-to-use digital products and services as well as easy and inclusive access to financial services. Its gross merchandise value (GMV) has increased from Rs 2,292 billion in FY19 to Rs 4,033 billion in FY21. Its total merchant base has grown from 11.2 million as of March 31, 2019, to 21.1 million as of March 31, 2021. Paytm is a leader in India’s digital ecosystem for consumers and merchants. Retail investors can invest a minimum of Rs 12,900 for a single lot and their maximum investment would be Rs 1,93,500 for 15 lots. The company has fixed the minimum bid lot size at six equity shares and in multiples thereof.The company also aims to invest in new business initiatives, acquisitions, and strategic partnerships (Rs 2,000 crore) among other general corporate purposes. With this issue raise, the company aims to grow and strengthen the Paytm ecosystem, including through the acquisition and retention of consumers and merchants and providing them with greater access to technology and financial services (Rs.The IPO price band has been fixed at Rs 2,080 to Rs 2,150 per share.The issue size is Rs 18,300 crore - Rs 8,300 crore in fresh stock and Rs 10,000 crore via OFS.The issue opens on Novemand closes on November 10, 2021.Here are some of the key details investors may keep in mind: Paytm is expected to list in mid-November. So how good of a business is fintech in India? Let’s take a peek at the company’s IPO filing.Large investors including Jack Ma’s Ant Group, Masayoshi Son’s SoftBank Corp are selling their shares. Let it suffice to say that it offers payments, bill pay and loans to the Indian market, among other efforts. To avoid this post going on for more words than you want to read, we’ll skip a deep dive into what Paytm offers the market. Thanks to TechCrunch’s Manish Singh, we also have some analyst numbers to lean up against for support. Was Paytm simply mispriced in its public debut? If so, we don’t have to spend as much time wondering if the larger Indian stock market is less than welcoming toward tech unicorns. What we want to know is whether we can spot in the numbers enough reason to understand the company’s awful post-IPO performance. So, what happened? To understand the lackluster Paytm IPO - technically the public offering from One 97 Communications, Paytm’s parent company - we’re going back to the company’s IPO filing, which we’ll augment with a new filing that dropped today containing a few more data points concerning its performance. As far as going public is concerned, seeing your share price fall 27% and then 13% is about as bad as it can go. Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.Īfter debuting last Thursday, Paytm has notched two double-digit declines, measured in percentage terms, during its first two days of trading. ![]() The Exchange explores startups, markets and money. ![]() After all, the company is incredibly well funded by investors that you know by name, and the Indian fintech giant has sufficiently scaled into a global brand. If you weren’t paying close attention, you might have expected a different result from Paytm’s IPO.
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