About the company
Paytm is one of the leading financial services companies providing payment solutions to customers headquartered in Noida. Along with payment services Paytm has entered into various other businesses like shopping, investment, gaming, insurance having a userbase of around 58 million. The company gained huge boost during demonetisation when there was a bit lack of cash in hands of people.
Today, more than 20 Million merchants & businesses are powered by Paytm to Accept Payments digitally.
Financials of Company
Company has been in loss since past few years. However, there has been a constant decline in losses from 2019 dispite of Paytm investing a huge amount in capital expenditure in 2020. There has been a constant operational expenditure from 2019. The revenue however dropped by 10% in FY’21 however the company was able to reduce losses by 42% by shrinking Marketing & Promotional Expenses.
Paytm has acquired quite a few companies, 11 companies approximately, till now. These acquisitions have either helped Paytm enter a new business area or have some technology and staff on board with Paytm thus enabling Paytm grow.
Paytm has been a leader in the Fintech Industry and is continuously focusing on Expansion through innovations. New products & Services have been added to the portfolio of services provided by the Fintech Giant. Launched over a decade ago as a platform for mobile phone top ups, Paytm has grown quickly into a fintech firm offering services including insurance, gold sales, bank deposits, remittances and movie and flight ticketing.
- Credit Card
- Insurance Broking
- All in One Android POS
- Equity Trading
- Smart POS
- Derivatives- F&O
Shareholding( Major Investors)
|Vijay Shekhar Sharma||14.97%|
|SoftBank Vision Fund||19.6%|
Large Global Groups have Invested in the Fintech Giant including Alibaba Group, Berkshire Hathaway Inc, Softbank Vision Fund, ANT Group, Elevation etc. which would hold their shares from a Long Term Propective (As per Sources).
Unlisted Share Details
|Total Available Shares||60,260,013|
|Face Value||₹ 10 Per Equity Share|
|Lot Size||5 Shares|
|Current Unlisted Share Price||₹ Best in Industry Per Equity Share|
In 2021, there was a Share Split @ 10:1 i.e. 1 Equity Share into 10 Equity shares outstanding. Total outstanding shares now are 60,26,00,130, Face Value Re.1.
Currently ONE97 Communication Shares are trading in Private Market from Rs 2400 to Rs 3000 though the available quantity in limited.
After the shareholders’ nod to fund raising via a primary issue and for stock split, bonus issue is the next on the cards at fintech giant Paytm. Dealers in the grey market, or the Private market for trading in unlisted shares, said the company might issue bonus shares in the 1:10 ratio.
On 12th July 2021, Paytm shareholders approved a resolution to raise Rs 12000 Crore through the issuance of Fresh Shares in IPO. Out of the total approved amount, the IPO will include an issue of new shares worth ₹8,300 crore and an offer for sale (OFS) worth ₹8,300 crore.
Highly disruptive space & High Competition
Paytm has warded off stiff competition from global players including Walmart’s PhonePe, Google Pay, Amazon Pay and Facebook’s WhatsApp Pay. Upon successful launch of IPO, Paytm would be the largest such offer. The Rs 15,200-crore Coal India’s IPO launched in 2010 is the country’s largest public issue to date.
Initial Public Offer
Paytm’s IPO could the largest in Indian Stock Market history. In 2010, Coal India was the highest, raising Rs 15,200 Crore. The funds raised through IPO would be utilized for New business Initiatives and also to strengthen its current payment ecosystem. J.P. Morgan, ICICI Securities, Citibank, Morgan Stanley, and HDFC Bank are among the company’s lead bookrunners for the offer.
When the News of Paytm filing DHRP for IPO to SEBI hit the market, the Share price went up to 2x in the Unlisted Market in a short span of time.
It is expected that Paytm’s IPO (ONE97) could go Public before Diwali in 2021.
List of links annual reports of paytm