One 97 Communications Limited – Globe Capital
One 97 Communications Limited
Closed
Price Band
Rs. 2080 – 2150
IPO Issue Period
Nov 08, 2021 to Nov 10, 2021
Issue Size
Rs. 18300 Cr.
Face value
Rs. 1/-
Fresh issue
Rs. 8300 Cr.
Offer for sale
Rs. 10000 Cr.
Minimum Shares for Retail
6 shares
Maximum Shares for Retail
90 shares
Listing on
NSE, BSE
Issue Type
Book Building
Tentative Listing Date
18-Nov-21
QIB
Not More than 75% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 10% of the offer
Registrar to the Issue
Link Intime India Private Ltd

Axis Capital Limited, Citigroup Global Markets India Private Limited, Goldman Sachs (India) Securities Private Limited, HDFC Bank Limited, ICICI Securities Limited, J.P. Morgan India Private Limited, Morgan Stanley India Company Pvt Ltd

One97 Communications Limited (“Paytm”) was incorporated on December 22, 2000. The company is India’s leading digital ecosystem for consumers and merchants. Paytm offers ‘Payment Services’, ‘Commerce and Cloud Services’, and ‘Financial Services’ to 33.3 crore consumers and over 2.18 crore merchants registered with them, as of June 30, 2021. Their 2-sided (consumer and merchant) ecosystem enables commerce, and provides access to financial services, by leveraging technology to improve the lives of their consumers and help their merchants grow their businesses. In 2009, the company launched the first digital mobile payment platform, “Paytm App” to offer cashless payment services to customers and now, it became India’s largest payment platform and the most valuable payments brand with a total brand value of US$6.3 billion as per Kantar BrandZ India 2020 Report. The app enables customers to do cashless transactions at stores, top-up mobile phones, online money transfers, pay bills, access digital banking services, purchase tickets, play games online, buy insurance, make investments, and more. However, merchants can use the platform for advertising, online payment solutions, offering products to customers, and loyalty solutions. Paytm is a professionally managed company with no identifiable promoters.

For year/ period ended ( in Cr.)

31 Mar 2021 31 Mar 2020 31 Mar 2019
Total Revenue 2802.4 3280.8 3232
Profit After Tax -1701 -2942.4 -4230.9
EPS
OPM(%)
PATM(%)
  • India’s leading digital payment service platform.
  • Strong brand identity with a brand value of US$6.3 billion.
  • Large customer base with 333 million total customers, 114 million annual transacting users, and 21 million registered merchants.
  • Paytm Super-app to access a wide range of digital payment services over mobile phones.
  • Growing and strengthening Paytm ecosystem, including through acquisition and retention of consumers and merchants and providing them with greater access to technology and financial services – Rs. 4,300 Crores
  • Investing in new business initiatives, acquisitions and strategic partnerships – Rs. 2,000 Crores
  • General corporate purposes
  • General Corporate purposes.

This company is a mega player in the digital ecosystem segment and has a lion share, but its top line has remained almost static for the last three fiscals and has been incurring losses for all these years and may remain in red in the near term too as per RHP. It has huge carried forward losses and negative earnings. Issue pricing is with a negative P/E. Hence, cash surplus investors may consider subscribe with a long term perspective.

Timeline
Application Start
08-11-2021
Application End
10-11-2021
Allotment Begins
15-11-2021
Refund Initiation
16-11-2021
Allotment Date
17-11-2021
Listing on exchange
18-11-2021
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