The issue of Paytm will open on November 8 and will close on November 10. A fresh issue of Rs 8300 crore has been issued for Rs 18300 crore while shares worth Rs 10,000 crore have been sold in the offer for sale. If this issue of Paytm is fully subscribed, then it will be India’s biggest IPO. Earlier, the issue of Coal India was the biggest which came in 2010.
Paytm IPO: Amidst the record boom in the IPO market, today on Monday, November 8, another big player will enter. Today the Rs 18300 crore IPO of Paytm’s parent company One97 Communications is going to open on 8 November. Its price band is Rs 2080-2150.
If this issue of Paytm is fully subscribed, then it will be India’s biggest IPO. Earlier, the issue of Coal India was the biggest which came in 2010. The issue of Paytm will open on November 8 and will close on November 10. A fresh issue of Rs 8300 crore has been issued for Rs 18300 crore while shares worth Rs 10,000 crore have been sold in the offer for sale.
Paytm valuation may take longer
Mint may valuations “Paytm take longer, said Angel One equity strategist (DVP) Jyoti Roy said, but it has become another name for digital payments. It is also the market leader in the mobile payment space. Between Fiscal Year 2021 to Fiscal Year 2026, mobile payments will grow 5 times and Paytm is in a position to benefit the most.
Choice Broking advised investment,
in such a situation it can be said that the expensive valuation of Paytm is also reasonable. We are advising investors to buy this issue.” Analysts at Choice Broking recommend subscribing to Paytm’s issue for the long term. Considering the market opportunities, product and technology for Paytm, investment in the issue has been advised.
Fund to Business Expansion
Paytm plans to use the funds raised from the fresh issue to add new merchants and customers. Paytm has not raised pre-IPO funds due to differences of opinion with investors over valuations.
Regarding the issue of Paytm, ICICI Securities says that due to the advent of new technology every day, the competition in the payment market has increased significantly. If Paytm is not successful in wooing merchants, then it will have a bad effect on its business. The major source of income of the company is payment service. Therefore, investors should invest by understanding its risks and benefits.
