Thread by @BiIndia

One 97 Communications — the parent company of digital payments giant #Paytm has launched its ₹18,300 crore ($2.4 billion) initial public offering (IPO)

#PayTmIPO #IPO #StockMarket

One 97 Communications — the parent company of digital payments giant #Paytm — launched its ₹18,300 crore ($2.4 billion) initial public offering (IPO) on Monday, at a price band of ₹2,080-₹2,150 per share.

#PayTmIPO

The lot size has been set at six shares, which means that a lot would cost ₹12,900 at the upper price band. It will close for subscription on Wednesday, November 10, and the allotment will be announced on November 15.

The listing date has been set at November 18.

#PayTmIPO

#Paytm is seeking a valuation of $19.3-$19.9 billion with this IPO, which has not gone down well with several stock brokerages and this has reflected in their recommendations for this IPO as well.

#PayTmIPO

While AngelOne has given a blanket subscribe call for this billion dollar IPO, KR Choksey and Arihant Capital Markets have noted that the IPO can be subscribed for listing gains.

#Paytm #PayTmIPO

Marwadi Financial Services has noted that #Paytm is at a great risk if the company fails to retain its customers, attract new customers, increase the volume of transactions from consumers and fail to maintain or improve its technology infrastructure.

#PayTmIPO

Jyoti Roy, deputy vice president of equity strategist at Angel One, has a different way of looking at it. He noted that the valuation does appear to be expensive, but #Paytm brand has become synonymous with digital payments and is the market leader in the mobile payment space.

KRChoksey believes that #Paytm will have to be on a high growth trajectory in revenue terms for a period of three years in order to sustain its current valuation.

#PayTmIPO

Arihant Capital Markets, on the other hand, noted that Paytm’s history of loss and negative cash flows in prior years have raised questions about its ability to turn profitable.

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