Recent Updates on Paytm IPO and the Future of the Company

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What Is Paytm and Its Historic Timeline

Paytm is headquartered in Noida, India, and is a leading business conglomerate in eCommerce, digital payments, and financial services. Besides offering services like mobile and DTH recharges, utility bill payments, movie, event, and travel ticket bookings, Paytm also facilitates bank account opening through the Paytm Payments Bank. Paytm users can also use the Paytm QR code to pay at grocery stores, retail shops, educational institutions, restaurants, etc. As of 2020, Paytm is a US$16 billion company, with Softbank, SAIF Partners, Berkshire Hathaway, Discovery Capital, Ant Financial, etc., as its investors.

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The company came into existence in August 2010, primarily as a mobile and DTH bill payment and recharge platform. In 2014, it launched the Paytm Wallet, and by 2015, Paytm users could pay education fees, electricity, gas, and water bills through the platform. The year 2016 saw the company foraying into movies and travel ticket booking, and in 2018, the ‘Paytm for business’ was launched. It also launched Paytm Money in the same year. 

IPO Updates of Paytm and Brief Overview of Share Stats

Paytm launched its IPO on November 8, 2021, and the closing date was November 10, 2021. The share was listed on BSE and NSE stock exchanges on November 18, 2021. While the issue price of the IPO was INR 2,150 per equity share, it was listed at a discount of 9.3% or INR 1,955. It eventually closed the day with a never seen before dropping to 27% and is considered the worst listing day performance by an Indian IPO.

The misery simply did not end for Paytm after its launch. On November 22, the stock dropped to below 1400-level, only to revive to 1,798 levels the next day.

Future Business Plans of Paytm and Expected Share Predictions

Paytm is one of the largest financial services companies in India. However, its bottom line has been a concern for both investors and the management. The fact that Paytm has been unable to cross the 1,800-mark in the stock exchange makes experts apprehensive of its future course. 

When it is about the future performance of the Paytm stock, research institutions are widely divided. For instance, Macquarie expects the stock to underperform to the extent of 44% from its IPO price and reach the 1,200-level. But, Dolat Capital Market predicts that the stock will touch 2,500, which is 16% higher than its IPO price. And JM Financial has given a ‘Sell’ rating on Paytm. 

The first financial report published by Paytm after going public indicated that the company’s revenue has increased by 60% in the July-September 2021 quarter. However, its losses have widened to INR 4.74 billion. Only time will tell whether Paytm will come back to the IPO levels, but looking at the management’s renewed vigor, we can assume that the company will get back on track soon.

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