One97 Communications is a payment gateway which eases the transactions through digital mode of payment. It’s application is Paytm and has more than 300+ Million active users today with more than 20 Million merchants affiliation. The company is not only active in providing a payment [rotal for the users but also gets them varied services like food orders, insurance, ticket booking, and many more. It has also applied to get a license for a discount broker and has got the same. Yes the company has expanded its business horizons into investment areas as well. Hence the users can get a complete experience and avail every service by solely owning his or her account in one application.
IPO DETAILS
One 97 Communications Limited IPO is set to launch on 8th Nov., 2021. The subscription timeline extends till 10th Nov, 2021. The size for the IPO is 18300 Crore Rs..Shares issued through Fresh Issue are worth Rs. 8300 Crore . Shares issued through Offer for Sale are worth Rs. 10000 Crore. The lot size is 6 shares and the price range is 2080 Rs. – 2150 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Re.1 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 8th Nov, 2021 |
| CLOSING DATE FOR IPO | 10th Nov, 2021 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 1 Re. per share |
| IPO price band | 2080 Rs. – 2150 Rs. |
| LOT SIZE | 6 shares |
| MINIMUM ORDER QUANTITY | 6 shares |
| ISSUE SIZE | 18300 Crore Rs. |
| OFFER FOR SALE | 8300 Crore Rs. |
| FRESH ISSUE | 10000 Crore Rs. |
| LISTING AT | NSE, BSE |
| LISTING DATE | 18th Nov, 2021 |
IMPORTANT DATES
| IPO OPENING DATE | 8th Nov, 2021 |
| CLOSING DATE FOR IPO | 10th Nov, 2021 |
| IPO ALLOTMENT DATE | 15th Nov, 2021 |
| REFUNDS | 16th Nov, 2021 |
| DEMAT A/C CREDITED ON | 17th Nov, 2021 |
| IPO LISTING DATE | 18th Nov, 2021 |
The One 97 Communications Limited IPO begins for subscription from 8th Nov, 2021. The IPO subscription would continue till 10th Nov, 2021. The allotment status for the shareholders who applied would come on 15th Nov, 2021. The refunds for the ones who did not get allotment would be initiated on 16th Nov, 2021. The DEMAT accounts of shareholders would be credited on 17th Nov, 2021. The listing of the company would be accompanied on 18th Nov, 2021.
Lead Managers
The lead managers are :
- HDFC Bank Limited
- Citigroup Global Markets India Private Limited
- ICICI Securities Limited
- Kotak Mahindra Capital Company Limited
- J.P. Morgan India Private Limited
- Goldman Sachs India Securities Private Limited
- Morgan Stanley India Company Private Limited
The minimum lot size for the company is decided at 6 shares. This holding accounts to 12900 Rs.. The maximum lot size is decided at 90 shares. This amounts to Rs. 193500 Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | 6 shares | 12900 Rs |
| Maximum | 90 shares | 193500 Rs |
OBJECTIVES FOR THE IPO
- The funds can be utilized for General corporate purposes.
- To dilute the shareholding and give the promoter an exit. Thus the Offer for Sale amount is so large.
- The company also wants to expand its business and hence wants to utilize the IPO money for the same.
COMPANY FINANCIALS
| Particulars (in Million Rs.) | 2020-21 | 2019-20 | 2018-19 |
| ASSETS | 91513 | 103031 | 87688 |
| REVENUE | 31868 | 35407 | 35797 |
| NET PROFIT | (17010) | (29424) | (42309) |
The asset base of the company has been shaky over the last 3 years. This is majorly due to the COVID situation. On the other hand one can also notice that the revenues have been on a downtrend. This has happened due to the COVID phenomenon. The disease has caused a direct hit on the merchant business of the company. Along with this the company has been registering a declining loss streak. But this is not enough as it has failed to register a profitable quarter till today.
PROS
- Paytm is a very safe and reliable software. It is also user friendly and a renowned name in the Indian Markets.
- The company has a solid growing asset base.
- It has a diversified business line and product portfolio.
- A quick mode of transferring money within seconds and widely used by the Indian Merchants. It actually leads the race ahead of PhonePe and Google Pay in the merchant Payment domain.
CONS
- The company hasn’t been able to post any profitable quarter ever since. Also the assets of the company have been very shaky lately.
- The company has suffered from the COVID situation but also gained a customer base due to online payment. However the merchant business has suffered due to COVID at large.
One 97 Communications Limited IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section.
- Click the One 97 Communications Limited IPO button and press the BID button.
- Entering the details asked for like UPI ID, Quantity and price.
- Submit the application form for the IPO.
- Visiting the application of UPI for approving the transaction.
Now, applying for an IPO online is possible with most of the Discount and online brokers.
