One 97 Communications Limited IPO Details

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Paytm IPO

Paytm IPO: Key Details

  • Grey Market Premium (GMP) today: 100 – 110

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

One 97 communications Limited a.k.a Paytm, incorporated in 2009, started as a “mobile-first” digital payments platform to enable cashless payments for Indians, giving them the power to make payments from their mobile phones. Starting with bill payments and mobile top-ups as the first use cases, and Paytm Wallet as the first Paytm Payment Instrument, they have built the largest payments platform in India.

They offered payment services, commerce and cloud services, and financial services to 337 million registered consumers and over 21.8 million registered merchants, as of June 30, 2021. Their two-sided (consumer and merchant) ecosystem enables commerce and provides access to financial
services through financial institution partners, by leveraging technology to improve the lives of consumers and help merchants grow their businesses.

They offer consumers a wide selection of payment options on the Paytm app, which include

  • Paytm Payment Instruments, which allow them to use digital wallets, sub-wallets, bank accounts,
    buy-now-pay-later and wealth management accounts and
  • Major third-party instruments, such as debit and credit cards and net banking

Competitive Strengths

  • Current ecosystem allows to address large market opportunities;
  • Trusted brand, scale and reach;
  • Insights of Indian consumers and merchants;
  • Product and technology DNA;
  • Network effect creates sustainable advantages for us; and
  • Leadership and culture

Company Strategy

  • Grow consumer and merchant base
  • Expand and enhance Paytm App’s offerings for oconsumers
  • Deepen merchants’ partnerships and drive adoption of technology among merchant base
  • Rapidly scale up financial services and expand access of financial services through deep tech-led solutions
  • Expand into international market

Proceeds from Paytm IPO will be used to:

  • Growing and strengthening the Paytm ecosystem, including through acquisition and retention of consumers and merchants and providing them with greater access to technology and financial services;
  • Investing in new business initiatives, acquisitions and strategic partnerships; and
  • General corporate purposes

Paytm IPO: Financials

201920202021 Mar2021 Jun
Revenue from Ops₹3579.7₹3540.7₹3186.8₹948.00
Profit before Excep*₹(4232.1)₹(2958.2)₹(1698.3)₹(378.80)
Profit after Tax(4235.5)₹(2943.3)₹(1704.0)₹(376.60)
EPS (Basic)(73.00)(35.10)(26.00)(6.1)
*Tax and Exceptional Items | ₹ in Crores, except EPS

As of March 2020EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS(36.9)
* Weighted Average for last 3 years

Paytm IPO: Comparison with listed industry peers

According to the RHP, the company does not have any comparable listed industry peers in India

Paytm IPO Dashboard

Issue Details

TypeValue
Issue Size18,300 Cr
Fresh Issue8,300 Cr
Offer for Sale10,000 Cr
Face Value₹1/- per Equity Share
IPO Price₹2080 – ₹2150
Lot Size6 shares
LotsMin 1 – Max 15

Key Dates

Date TypeDate
Bid Open8/11/2021
Bid Close10/11/2021
Allotment Finalization15/11/2021
Initiation of Refunds16/11/2021
Credit of Shares17/11/2021
Listing Date18/11/2021

Lot Size and Price

LotsSharesAmount
16₹12,900
1590₹1,93,500

Promoter Group Holding

HoldingPercentage
Pre-Issue0.00%
Post-Issue0.00%

Paytm IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB75%2,63,94,231 shares
NII15%1,31,97,115 shares
RII (Retail)10%87,98,076 shares
Total100%4,83,89,422 shares

Paytm IPO: Risks

  • They have a history of net losses and we may not be able to achieve profitability.ture.
  • Failue to pass any signification increase in payment processing charges payable to financial institutions and card networks to its merchants or consumers
  • Paytm offers some of its services in partnership with a Group Company, Paytm Payments Bank. Any failure by Paytm Payments Bank to support these services can impact business
  • Failure to manage growth effectively, resulting in an inability to execute its business plan or maintain high levels of service and satisfaction could adversely affect business

For complete internal and external risk factors, you can refer to the RHP of the company.

Paytm IPO: Registrar and Lead Managers

Registrar of the Issue

Link Intime

C-101, 247 Park
L B S Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India

Phone: +91 22 4918 6200
Email: [email protected]

Lead Managers of the Issue

Morgan Stanley India Company Private Limited
Goldman Sachs (India) Securities Private Limited
Axis Capital Limited
ICICI Securities Limited
J.P. Morgan India Private Limited
Citigroup Global Markets India Private Limited
HDFC Bank Limited

Phone: +91 22 6616 9000
Email: [email protected]

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