Paytm paytm ipoacharyabloomberg11/8/2023 They all either declined to comment or didn’t respond to requests for comment.Ĭritics have questioned Paytm’s prospects in recent months. Paytm’s IPO was managed by leading banks, including Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co., ICICI Securities Ltd. The IPO had been touted by some as a symbol of the country’s growing appeal as a destination for global capital, particularly for investors looking for alternatives to China. India’s largest digital-payments provider lost more than a quarter of its value in its first day of trading, marking one of the worst-ever debuts by a major technology company and casting a chill over a stock-market boom that had ranked among the world’s most frenzied. “The stock price may not go down significantly since 87% of issue was subscribed by institutional investors, who can always support the price,” said Deven Choksey, a strategist at KRChoksey Investment Managers Pvt. Loan disbursals, which analysts see as key to Paytm turning profitable, increased more than 400% to 6.27 billion rupees. Gross merchandise value rose 131% to 832 billion rupees ($11.2 billion) for the month, the company said. Over the weekend, Paytm released financial details for the month of October, which includes the critical period ahead of the Diwali holiday. Indian markets were shut Friday for a holiday. Founder and Chief Executive Officer Vijay Shekhar Sharma had persistently made clear that he wanted Paytm to surpass the long-standing IPO record set by Coal India Ltd. Paytm’s parent company, One 97 Communications Ltd., raised $2.5 billion in its IPO, the most-ever for India, but its disastrous trading debut sparked criticism the company and its investment bankers had pushed too hard in the offering. The entry multiple for Paytm might appear steep, “however we see it as sustainable since it is the most impactful and real-economy internet business,” the note said.(Bloomberg) - Shares of India’s pioneering digital payments startup Paytm will be closely watched by traders after the stock plunged 27% in its debut Thursday following a record initial public offering. Its revenue rose more than 60%, boosted by strong growth in its financial, commerce and cloud services. Paytm reported its first financial results as a public company over the weekend, with losses widening to 4.74 billion rupees in the July-September quarter from a year earlier amid rising expenses. Paytm has the backing of top global investors, including Masayoshi Son’s SoftBank Group Corp., Warren Buffett’s Berkshire Hathaway Inc. One 97 Communications Ltd., Paytm’s parent company, raised $2.5 billion in its IPO but its debacle of a debut made it one of the worst initial showings by a major technology firm since the dot-com bubble era of the late 1990s. JM Financial has a sell rating on the stock, while Macquarie has rated it as underperform. Paytm dropped as much as 2.7% to 1,592 rupees on Thursday, a fifth day of declines, after plummeting 37% in the first two sessions of trading. The brokerage has set a target price of 2,500 rupees ($33.4), which is 16% higher than the company’s issue price. It positions the company as “one of the strongest digital brands to garner significant share of opportunities that will evolve in the Indian internet ecosystem,” they said. Paytm’s “super app” has emerged from a pure “want” category to reach to the “need” status, Dolat analysts, led by Rahul Jain, said. (Bloomberg) - Paytm, which has moved wildly since its listing after India’s largest initial public offering, has received the first buy rating from a brokerage that expects the company to turn profitable by March 2026.ĭolat Capital Market Pvt, the third brokerage to initiate coverage on the digital payments giant after Macquarie Capital Securities and JM Financial Institutional Securities Ltd., said its transition to a “manufacturer” of financial services from an agent, cross-selling of services, and strong growth in the number of users will help the company.
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