share in Paytm IPO Will be offered in the price band of Rs 2,080-2,150, which is valued at around Rs 1.48 lakh crore (approximately $20 billion). The Rs 18,300 crore offer will be the biggest since the IPO of Coal India Ltd in 2010, in which the state-owned company raised Rs 15,200 crore.
Managing Director and CEO of One97 Communications at the Pre-IPO Conference on Thursday Vijay Shekhar Sharma He said that he has received personal messages from investors who want to invest in the country for the first time and said that “this is the era of India”.
The IPO – which will close for subscription on November 10 – includes issuance of fresh equity shares worth Rs 8,300 crore and offer for sale by existing shareholders for Rs 10,000 crore. “The price band which is set at Rs 2,080 to Rs 2,150 per share, means the enterprise value ranges from $19.3 billion to $19.9 billion,” Sudarshan Ramakrishna, MD, Goldman Sachs India Securities, said during the IPO presentation. At current exchange rates, the enterprise value is between Rs 1.44 lakh crore and Rs 1.48 lakh crore.
The firm skipped the pre-IPO funding round to accelerate the launch of the initial share sale.
“If we can say that 2010-20 was largely for Asia, China and Japan and other countries, then 2020-30 is 100% for India. This is the age of India,” Sharma said. “Are you a private firm, young startup or potentially a listed or listed company. This is the time when the world is going to give you money.”
Sharma will sell up to Rs 402.65 crore of stock, while Antfin (Netherlands) Holdings will sell shares worth Rs 4,704.43 crore in an offer-for-sale. In addition, Alibaba.com Singapore E-commerce will sell shares worth up to Rs 784.82 crore, Elevation Capital V FII Holdings (Rs 75.02 crore), Elevation Capital V Limited (Rs 64.01 crore), SAIF III Mauritius (Rs 1,327.65 crore), SAIF. Partners (Rs 563.63 crore), SVF Partners (Rs 1,689.03 crore) and International Holdings (Rs 301.77 crore), as per the offer document.
Paytm President and Group CFO Madhur said, “Ever since we filed the DRHP (Draft Red Herring Prospectus), there has been tremendous interest from Indian and global blue-chip investors. We have always had a very high quality stock. It was the base that has benefited us.” Deora said.
Paytm’s revenue from operations grew 62% year-on-year to Rs 890.8 crore in the first quarter of 2021-22. In FY21, the company reported a gross trading value of Rs 4 lakh crore.
“We have quoted GMV as a number in the document that the consumer is paying, which means a commerce is taking place on our platform,” Sharma said. “We now have a contribution profit of Rs 363 crore. It is important to note that payments are a wheel, monetization is in payments and financial services. That is our business model.”
“Paytm as a brand is worth Rs 47,000 crore,” he said.
In the first quarter of FY’22, the company’s payments and financial services revenue alone stood at Rs 689.4 crore, which is 77% of its total revenue. The company reported a loss of Rs 2.9 crore in the quarter ended June 2021.
Talking about the growth prospects, Sharma said that there are around 40-50 crore smartphone users which is expected to double to around 90 crore in the next five years. He said that this will increase the mobile payments segment to Rs 230 lakh crore from the current Rs 46 lakh crore.
According to research firm RedSeer, Paytm has a mobile payments transaction volume market share of around 40% and wallet payments transaction market share of 65-70% as of FY2011.
According to the offer document, demonetisation in 2016 also played a role in prompting merchants to accept payments digitally and led to a rise in products such as QRs and wallets. Digital payments are expected to more than double from $20 trillion in FY2011 to $40-50 trillion by FY26, with several factors including government initiatives and reforms, improved technology, increased access and awareness.