Paytm IPO opens today: Only high-risk taking investors should apply for long-term, says Anil Singhvi

The initial public offer (IPO) of One 97 Communications Ltd (Paytm) will open today, November 8, 2021. The three-day Rs18,300-crore IPO will close on November 10, 2021. The company has fixed a price band of Rs 2,080-2,150 apiece for this IPO. The offer comprises fresh issuance of equity shares worth Rs 8,300 crore and Rs 10,000 crore from an offer for sale (OFS) by existing shareholders.

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Earlier, on Wednesday, Paytm raised Rs 8,235 crore from anchor investors.

The Rs 18,300-crore offer, if successful, will be the biggest in the country after Coal India's IPO in 2010, wherein the state-owned company had garnered Rs 15,200 crore.  

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As the much-talked about IPO opens on Monday, Zee Business Managing Editor Anil Singhvi has recommended only high-risk taking individuals to apply for this IPO. "Only high-risk taking investors can apply for long term," said Anil Singhvi on Monday.

The market guru also laid out positives and negatives of the IPO.  Talking about what's in favour of this online payment company, Zee Business Managing Editor said strong brand and promoters works for this company. Besides, strong track record and a market leader in it segment and diversification into new areas are other positives for this company  

Continuous loss-making company with no certainty about as in know when it will come to profit is one of the biggest negatives. Highly competitive business, crowded with many places, revenue declining from consumers are other things that do not augur well for the company. Also focus on inorganic growth is a costly affair, " said the market guru.  

Company details  

Incorporated in 2000, One 97 Communications Ltd is India's leading digital ecosystem for consumers as well as merchants. In 2009, the company launched the first digital mobile payment platform, "Paytm App" to offer cashless payment services to customers and now, it became the India's largest payment platform and the most valuable payments brand. It offers payment services, commerce and cloud services and financial services to 337 million registered consumers and over 21.8 million registered merchants, as of June 30, 2021. Its software and cloud services allow large, medium and small merchants to improve their business operations and access important financial tools such as banking, wealth and credit facilities.  
 

Paytm IPO Timeline:  

Application start date: November 8, 2021  

Application end date: November 10, 2021  

Allotment start date: November 15, 2021  

Refund initiation date: November 16, 2021  

Allotment date: November 17, 2021  

Listing date: November 18, 2021  

*Dates as per Upstox