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Paytm IPO Details : One 97 Communications Limited IPO

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.