Paytm IPO
What does the Paytm company do
197 communication ltd commonly known as Paytm. Paytm have 3 segments.
1- Payment services
2- Commerce and cloud services
3- Financial services
Payment services
When you go to any shop and you can pay the amount through the Paytm app by scanning the barcode.
Commerce and cloud services
When you book movie tickets or air tickets through the Paytm app. These will come under the commerce and cloud segments.
Financial services
Paytm bank and the fast tag will come under the financial services
What are examples of payment services related?
- Payment gateway — 2012
- Paytm wallet — 2014
- QR code –2015
- Soundbox — 2019
- All in one QR — 2020
- All in one gateway — 2020
- All in one Android Pos — 2020
- Smart Pos -2021
Commerce and cloud services
- 1- Movie ticket bookings –2015
- 2- flight ticket bookings –2016
- 3- events ticket bookings –2017
- 4- Paytm first games — 2018
Financial services
- Paytm Payments bank –2017
- Paytm gold –2017
- Fast tag –2017
- Marchant cash advance — 2019
- Paytm money – 2018
- Postpaid – 2018
- Credit card –2021
- Insurance – 2021
- Derivative and FD 2021
- Equity trading 2021
Payment services Contributing the overall 71 % of the total revenue
Payment service to consumers 35 %
Payment services to merchandise 36 %
Total payments 71 %
Commercial and cloud
Commerce 9 %
Cloud 16 %
Total commerce and cloud 25 %
Financial services
Total financial services 4 %
Total revenue 100%
About the company
Who is 197 Communication ltd?
197 communication ltd is India’s leading digital ecosystem for consumers and merchants as they build the largest payment platform in India
They are the largest in terms of
- Number of consumers
- Number of merchants
- Number of transaction
- Number of revenue
They offer payment services, commerce and cloud services, and financial services to overall 337 million customers. 143 million are the recurring customers in Paytm company and over 21.8 million registered merchandise.
Paytm is not a profitable company in 2019 they made a loss of 42309 cr
in 2020 they made a loss of 29424 cr
in 2021 as of June end, they made a loss of 3819 cr
In early 2009 Company launched the first digital mobile payment platform which is known as the Paytm app. that was the first step to the cashless transaction. Right now we can see many digital platforms perform cashless transactions. but in 2009 Paytm is the only app that provide these facilities. After the demonetization, most of them started moving into cashless transactions to a certain extent.
They are having more threats now because WhatsApp is entered into the payments system.
Now Paytm have the largest payment platform and it contains a total brand value of 6.3 billion us dollar.
Paytm stands in the top 3 payment services in India. there are many services are provided by Paytm.
Paytm comes in the third position followed by phonepe1 and google pay
Top 5 IPO’s happened in India
- Coal India
- Reliance Power
- GIC general insurance corporation
- New India Insurance
- DLF
And we know how these shares are performing
How Paytm helps the merchants
- It helps in comprehensive payments solutions
- Acquisition and retention of customers and demand creation.
- Access to digital financial services.
How Paytm helps the consumers.
- Access a wide selection of daily life use cases
- Usages of Paytm payments instruments
- Access to financial services through their partners.
Industry analysis of Paytm.
Paytm payment services provide major contributions to the total revenue of Paytm.
Paytm IPO details
IPO payment opening date Nov 8, 2021
IPO payment closing date Nov 10, 2021
Basis of allotment date Nov 15, 2021
Initiation of refunds Nov 16, 2021
The credit of shares to Demat account Nov 17, 2021
IPO listing date Nov 18, 2021
Issue type: Bookbuild issue IPO
Face value: 1 Rs per equity share
IPO price: 2080 to 2150 per equity
Market lot: 6 shares
Min order quantity: 6 shoes
Listing at: BSE and Nse
Issue size Equity shares of RS 1 ( aggregating up to 18300 Cr)
Fresh issue: Equity shares of Rs 1 (aggregating up to 8300 cr)
Offer for sale: Equity shares of Rs 1 (aggregating up to 10000 Cr)
| Application | Lots | Shares | Amount cut off
|
| Minimum
|
1 | 6 | 12900 |
| Maximum
|
15 | 90 | 193500 |
Objects of the Paytm IPO
- Spending ~4300 for growing and strengthening the Paytm ecosystem.
- Spending ~2000 cr for investing in new business initiations, acquisitions, and strategic partnerships
- Rest amount they will invest in general corporate purposes.
What decision we can take on Paytm IPO
Paytm have investments from Warren Buffett, jack ma, and Soft Bank, which help s them to lead the promotions. Out of 18300cr, 45 % of shares are new issues and 55 % of shares are offered for sale. Since its loss-making company needs to think twice before applying for the Paytm IPO. If you are looking for a long-term investment it’s a good decision.