Paytm IPO oversubscribes 1.33 times so far with half a day remaining, IT News, ET CIO


New Delhi, India’s leading digital payments and financial services platform PaymentIts IPO has now been fully subscribed on day 3 of its offering. The company is now expected to be listed as India’s largest premier stock market.

According to data available on the stock exchange at 1:47 p.m., IPO Paytm has been subscribed 1.33 times so far, with the QIB tranche being subscribed 1.88x. In total, 6 41 16 546 Paytm shares were purchased against 4 83 89 422 available shares. Earlier on Day 1, Paytm’s IPO achieved the highest retail subscription percentage ever for IPOs with retail sizes above Rs 1,000 cr, over the last decade, which was then oversubscribed at the start of Day 2.

National financial institutions (banks / financial institutions / insurance companies) also placed their bids on day 3.

As expected, the QIBs placed their orders on the last day of the IPO offer / offer.

Analysts are also betting on the IPO. Canara Bank Securities analysts have said “Enlist long term” for Paytm’s IPO. “It is India’s primary digital ecosystem for consumers and traders. It offers payment, commerce, cloud and financial services through its payment app. The high penetration of internet and smartphone users has helped the company grow at a faster rate thanks to an attractive user. interface through the Paytm application, ”analysts said.

Paytm, which started as a mobile wallet in 2009, has added many other companies – Paytm payment bank, Paytm payment gateway, Paytm payment, Pay money, Paytm Insider, Paytm Insurance, Paytm Postpaid (Buy Now Pay Later), Paytm for Business, Paytm Credit Cards, Paytm First Games as well as utility bill payments, offline merchant payments, lease payments, content and much more.

The company has seen a huge increase in revenue from its payment and financial services offerings. The company’s turnover increased 46% to Rs 9,480 million in the first quarter of FY22, compared to Rs 6,494 million in the first quarter of FY 21. It is on track to recover. profitability because the company has already reported contribution margin profits.

And this is also another factor that impresses analysts. Analysts Trusted Securities said “Sign up long term” for Paytm’s IPO, as the company has demonstrated great sales force despite the Covid-19 pandemic. “A strong 33% CAGR in GMV in FY19-FY21, despite the pandemic, confirms Paytm’s leadership and brand value. long term, ”a report from Reliance Securities said.

Reliance Securities analysts have also defended Paytm’s valuation of $ 20 billion because it “has created significant scale and brand equity which is likely to be sustained.”

“As the company’s ecosystem allows it to seize great market, scale and reach, product, technology and leadership opportunities, we are giving this IPO a ‘Subscribe’ rating (long term), “” analysts Anand Rathi said.

Analysts at the leading financial and investment advisory firm also listed Paytm’s ecosystem, brand and trust scale, the company’s insight into Indian consumers and traders, its technology DNA, its leadership. and its culture as well as the network effect it creates as its strengths.

Paytm has also become a financial services giant, which offers more opportunities. Paytm’s payments and financial services alone contribute almost 80% of its revenue.

“In addition, app users can benefit from banking and non-banking financial services on the mobile app. The company has a market share of around 40% in the overall payment transaction volume and 65% to 70% market share. of wallet payments transactions in India starting in fiscal 2021. The company has shown substantial growth in user base and GMV since its inception in the FinTech sector. In addition, the business is scalable due to the great convenience of digital banking services, ”Canara Bank Securities analysts said.

Paytm had closed India’s largest anchor tower on November 3 as it raised Rs 8,235 crore. Blue-chip global investors and tech-focused funds made their very first investment in India’s public markets through the IPO of Paytm, while investment giants like Blackrock, CPPIB and GIC made their debut. biggest bets in an Indian IPO. The company has also attracted the world’s best pension funds, retirement funds as well as sovereign wealth funds like Singapore government, CPPIB, ADIA, APG, City of New York, Texas Teachers Retirement, NPS Japan, University of Texas, NTUC Pension outside of Singapore. , University of Cambridge. The largest investors dedicated to emerging markets like Standard Life Aberdeen, UBS, RWC also took part in Paytm’s anchor round.

The company opened a tender on November 8 and will remain open until November 10. The price range for Paytm’s IPO has been kept in the Rs 2,080-2,150 range as Paytm targets a valuation of $ 20 billion. The company is set to increase Rs 18,300 crore in the markets with a new issue of Rs 8,300 crore and a sell offer of Rs 10,000 crore.

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