Paytm IPO: The IPO of the country’s largest digital company Paytm has opened today. This IPO of Rs 18300 crore is the biggest IPO ever in the country. Earlier this record was in the name of the giant government company Coal India, whose IPO came in 2010 and it was worth Rs 15475 crore. Paytm’s IPO is worth Rs 18300 crore, under which new shares worth Rs 8300 crore will be issued. For investing in this, investors will have to invest at least Rs 12,900 according to the upper price of the fixed price band. About 30 percent of Paytm’s Rs 18,300 crore IPO is owned by the Chinese giant Ant Group, that is, two companies of Ant Group will sell shares worth about Rs 5490 crore through the issue.
According to the Kantar BrandZ India 2020 Report, the brand value of Paytm, the payment app company of One97 Communications, is $ 630 million (Rs 46753.15 crore), which is the highest among all payments brands. Not only do money transactions and shopping happen through this app, but shopkeepers also use it for advertising of their products etc.
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One 97 Communications Limited IPO (Paytm IPO)
- The country’s largest digital payment company Paytm’s Rs 18,300 crore IPO has opened today and will remain open till November 10.
- Under the issue, new shares worth Rs 8300 crore will be issued while shares worth Rs 10 thousand crore will be sold under Offer for Sale (OFS).
- The price band for shares with face value of Re 1 has been kept at Rs 2080-2150 per equity share.
Paytm’s parent company One97 Communications has fixed a lot size of 6 shares i.e. investors will have to invest at least Rs 12900. - The allotment may be final on November 15 while the shares may get listed on the exchange on November 18.
- Link Intime India has been appointed as the Registrar for the issue.
- With Rs 4300 crore raised through IPO, the company will further strengthen its ecosystem. Two thousand crore rupees will be invested in new business or acquisition or strategic partnership. Apart from this, the money will be used for general corporate purposes.
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Chinese giant’s stake will be reduced
Through IPO, shares worth Rs 10 thousand crore will be sold under Offer for Sale (OFS). In this, the companies of Ant Group will sell the most. According to the RHP (Red Herring Prospectus) filed by the company, Ant Group’s AntFinance (Netherlands) will sell shares for Rs 4704.43 crore and Alibaba.com Singapore E-commerce for Rs 784.82 crore. According to documents filed with SEBI, Antfin (Netherlands) Holding BV holds 27.9 per cent and Alibaba.com Singapore E-commerce Pvt Ltd holds 6.8 per cent, both of these companies will sell shares worth Rs 5489.25 crore, which is about 30 per cent of the total issue. Is. The company’s founder and CEO Vijay Shekhar Verma has 14.7 per cent equity holding in it and will sell shares worth Rs 402.65 crore.
Paytm not profitable in any financial year
The company has around 333 million customers and 114 million annual transacting users and 210 million registered merchants. Talking about the financial condition of the company, since Paytm has started, it has not made any profit in any financial year. In the last three financial years, there has been no profit (profit after tax) but the loss has come down. In the financial year 2019, the company had a loss of Rs 4230.9 crore, which came down to Rs 2942.4 crore in the next financial year 2020 and then came down to Rs 1701 crore in the next financial year 2021.
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