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This article is more than 2 month old.

Paytm to be among top 50 companies post-IPO worth Rs 18000 crore

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All eyes are on India’s largest payments platform as it heads to the primary market to raise funds. The proposed Rs 18,300-crore IPO will put Paytm in the 36th position by market capitalisation among listed firms.

Paytm to be among top 50 companies post-IPO worth Rs 18000 crore

With a post-IPO (Initial Public Offering) valuation of Rs 1,39,378 crore at Rs 2,150 apiece, Paytm will join the elite list of India’s 50 most valuable companies. The proposed Rs 18,300-crore IPO will put Paytm in the 36th position by market capitalisation among listed firms.

Paytm, which was launched in 2009, is India’s largest payments platform in terms of the number of consumers, merchants, transactions and revenue as of March 2021. Its gamut of services includes bill payments and mobile top-ups, Wallet, digital banking and UPI transfers.

It is reported to have over 330 million users, including 50 million active monthly users and 21 million registered merchants on its platform. Its digital banking arm serves 65 million payment bank accounts and holds deposits worth Rs 5,800 crores as of June 2021.

As per the company’s declarations, the total sales for June 2021 stand at Rs 3,186.80 crore. The company is yet to turn profitable and it has posted net losses of Rs 1,701 crore. In terms of debt, its total borrowings stand at Rs 476 crore in June 2021, which is lower than its debt in June 2020, which stood at Rs 544.90 crores.

Analysts say with a valuation of Rs 1.39 trillion, the price to sales will be 47.1x, which looks very expensive.

Of the funds assimilated through IPO, Paytm plans to invest a significant portion in research and development, client and business partner acquisition and customer and merchant retention. About Rs 2,000 crore will be earmarked for new business initiatives, acquisitions and strategic partnerships. And Rs 4,300 will be invested to improve the fintech’s ecosystem.

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