One 97 Communications Limited IPO (Paytm IPO)
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i. One 97 Communications was started in 2000, which launched Paytm in 2009, as a “mobile-first” digital payments platform to enable cashless payments for Indians, giving them the power to make payments from their mobile phones.
ii. It offers consumers a wide selection of payment options on the Paytm app, which include
(i) Paytm Payment Instruments, which allows to use digital wallets, sub-wallets, bank accounts, buy-now-pay-later, and wealth management accounts.
(ii) Major third-party instruments, such as debit and credit cards and net banking.
iii. The company’s ecosystem serves 333 million consumers and over 21 million merchants.
Competitive Strengths
i. Trusted brand, scale and reach
ii. Deep insights of Indian consumers and merchants
iii. Leadership and our distinctive culture
Objects of the One 97 Communications Limited IPO (Paytm IPO):
The Offer comprises a Fresh Issue of up to 3.86 Crores Equity Shares, aggregating up to ₹ 8300 Crores by the Company and an Offer for Sale of up to 4.65 Crores Equity Shares, aggregating up to ₹ 10000 Cr by the Selling Shareholders.
Net proceeds from the fresh issue will be used in :
1. 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
2. Investing in new business initiatives, acquisitions and strategic partnerships
3. General corporate purposes.
One 97 Communications Limited IPO (Paytm IPO) Details:
| Open Date: | Nov 08 2021 |
| Close Date: | Nov 10 2021 |
| Total Shares: | 8.5 Cr |
| Face Value: | ₹ 1 Per Equity Share |
| Issue Type: | Book Built Issue |
| Issue Size: | 18,300 Cr. |
| Lot Size: | 6 Shares |
| Issue Price: | ₹ 2080-2150 Per Equity Share |
| Listing At: | NSE,BSE |
| Listing Date: | Nov 18 2021 |
Promoters And Management:
i. Mr. Vijay Shekhar Sharma, is the Managing Director and Chief Executive Officer of the Company and the Chairman of the Board. He holds a bachelor’s degree in electronics and communications from the Delhi College of Engineering. Mr. Sharma is the founder of the Company and oversees the Company's key strategic efforts including engineering, design and marketing. Mr. Sharma has featured in ‘2017 Time 100’, the list of ‘hundred most influential people in the world’ by Time magazine. He has received multiple industry honours such as the ‘Entrepreneur of the Year’ award in 2018 by All India Management Association, ’Entrepreneur of the Year’ at ET Awards for Corporate Excellence’ in 2016 and ‘GQ Man of the Year’ in 2016.
ii. Mr. Munish Varma, is a Non-Executive Director of the Company and a nominee of SVF on the Board. He has completed his master’s in business administration from Cornell University. He currently serves as a managing partner at SoftBank Investment Advisers. He was also associated with Deutsche Bank AG.
iii. Mr. Ravi Chandra Adusumalli, is a Non-Executive Director of the Company and a nominee of SAIF and Elevation Capital on the Board. Mr. Adusumalli holds a bachelor’s degree in economics and government from Cornell University. He is currently the managing partner of Elevation Capital.
Financials of One 97 Communications Limited IPO (Paytm IPO):
| Particulars (in Cr) | 2021 | 2020 | 2019 |
| Payment and financial services | 2200 | 1900 | 1700 |
| Commerce and cloud services | 690 | 1100 | 1500 |
| Other Operting Income | 0 | 225 | 0 |
| Other Income | 380 | 260 | 347 |
| Total Income | 3270 | 3485 | 3547 |
| Payment Process Expense | 1916 | 2265 | 2257 |
| Marketing Expense | 530 | 1400 | 3408 |
| Other Expenses | 2337 | 2473 | 2078 |
| Total Expenses | 4783 | 6138 | 7743 |
| Profit/Loss | -1513 | -2653 | -4196 |
Comparison With Peers:
There is no peer in the market which is listed and doing same business as that of paytm.
Recommendation on One 97 Communications Limited IPO (Paytm IPO):
Review and Recommendation of Paytm IPO by InvestorZone is 5/10
1. Paytm is India's biggest IPO in the history. So, how it will perform on listing is a big thing to watch out for.
2. Paytm has plethora of services like Payment Bank, Mutual Funds, Insurance, Stock Broking business. However, over the years in the payment business, it is facing stiff competition from PhonePe and Google Pay. And, now the latest entry is Whatsapp.
3. The revenue of Paytm is flat in the last 3 years and PAT is still negative. But now Paytm is reducing the expenses and trying to get in profit.
4. Banking License in coming years will be the biggest trigger for Paytm.
5. Current IPO Valuation is $20 Billion, which is over-valued or under-valued will be tested in the market.
Lead Manager of One 97 Communications Limited IPO (Paytm IPO):
Registrar of One 97 Communications Limited IPO (Paytm IPO):
Company Address:
One 97 Communications Limited
First Floor, Devika Tower, Nehru Place,
New Delhi 110 019, India
Phone: +91 11 2628 0280
Email: compliance.officer@paytm.com
Website: http://www.paytm.com/
Discussion on One 97 Communications Limited IPO (Paytm IPO):
4 Comments
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acha hua apply nhi kiya maine..only smart move i made this year
Sir
In view of current subscription figures, should we apply this ipo
Sir what about GMP?
Current GMP is 150 per share.