Paytm India largest digital payment platform today announced that it has received approval from SEBI for its IPO and it has now filed the Red Herring Prospectus. It has also disclosed its financials for three months ended June 2021, as the company prepares for its mega IPO.
As of now, the proposed IP is the largest of its kind. Notably, the Rs 15,200 crore initial public offering of Coal India in 2010 was the country’s largest to date. Paytm’s IPO will open for subscription from November 8 at a price range of Rs 2,080- 2,150 per share with a face value of Rs 1 each. While Paytm’s IPO will close for subscription on November 10.
The booking running managers are as follow:
- Morgan Stanley India Company Private Limited
- Axis Capital Limited
- ICICI Securities Limited
- JP Morgan India Private Limited
- Citigroup Global Markets India Private Limited
- HDFC Bank Limited
Whereas Link Intime India Private Limited will be the registrar to the offer. According to the company, the bids can be made for a minimum of 6 equity shares and in multiples of 6 equity shares thereafter. Moreover, the Qualified Institutional Buyers will receive no more than 75 percent of the net offer, while the retail investors will receive 10 percent and non-institutional investors will receive the rest 15 percent (NIIs).
Investors must make certain that the bank account that will be used for bidding would be linked to their PAN.
Paytm is planning an IPO worth Rs 18,300 crore making its largest market debut in the country till now. As a result of increased investor demand, it has increased the size of its initial public offering (IPO) from Rs 16,000 crore to Rs 18,600 crore.
According to the company’s RHP, Paytm’s revenues increased dramatically in three months ending June 2021 owing to its payments and financial service offerings. The Revenue from operations increased b 62 percent to $8,908 million in Q1FY22 from $5,512 million in Q1 for the year 2021.
In addition to this Paytm’s payments and financial service revenue alone accounted for $6,894 million in Q1FY22 accounting for 77 percent of total revenue. The company’s contribution margin too increased significantly in Q1FY2022 rising from 14.9 percent in Q1FY21 to 27.4 percent in Q1FY22. Due to a loss of $3,819 million for the three months ending June 2021, the company’s marketing and promotional expenses increased to $ 1,3777 million for Q1FY22. Also, employee benefits expenses increased to $3,507 million in Q1FY22 from $2,138 million in Q1FY21.
Paytm’s total user base has increased to 337 million registered consumers and over 21.8 million registered merchants as of June 30, 2021 according to the company’s RHP.
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