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ONE 97 COMMUNICATIONS PVT LTD (PAYTM)

IPO Details

ICICI Direct Research Rating : UNRATED
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6 shares
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₹ 2080 - 2150
₹ Upto 18,300 cr

Timeline

  • 15-Nov-2021
  • 16-Nov-2021
  • 17-Nov-2021
  • 18-Nov-2021

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

Paytm, owned by One 97 Communications Ltd, is India’s leading digital ecosystem for consumers and merchants, according to RedSeer. The company offers payment services, commerce and cloud services, and financial services to 333 million consumers and over 21.1 million merchants, as of March 31, 2021. A two-sided (consumer and merchant) ecosystem enables commerce, and provides access to financial services through financial institution partners, by leveraging technology to improve the lives of consumers and helps their merchants grow their businesses.

Strengths & Risks

Strengths (3)

Increasing pace of digitization

According to RedSeer, India’s active internet users are expected to increase from 400-450 million in FY 2021 to approximately 900 million in FY 2026. These users are expected to transact online for bill payments, shopping, entertainment and other needs.

Risks (2)

Competetive industry of operation

Participate in markets that are continuously evolving technology and consumer needs. Inability to innovate in future may have adverse impacts on business.

Financials

Industry Overview

Over the last decade, India added 500 million+ new smartphone users. With higher affordability, reducing smartphone costs (average smartphone cost being less than US$ 150) and availability of greater variety of value smartphones, the number of smartphone users expected to reach 800-850 million in FY 2026, representing more than 55% of total population and 80% of internet users.

In FY 2021, 650 - 700 million Indians had access to the internet and the number is expected to increase to over 950- 1,000 million by FY 2026 representing more than 70% of the total population, this is primarily driven by increasing smartphone penetration, reducing data cost, new technology innovations and Government’s push towards digitization.

*The financials mentioned above are sourced from DRHP/ RHP documents.