IPO

ANALYSIS
OF
PAYTM
By Anmol Chaku
Shazan Salim
Kumar Harshit
Priyanshu Jha
Gourang Dolawat
“Paytm founded in 2010 by Vijay Shekhar Sharma. Started
as mobile recharge and bill payment platform. Expanded to
e-commerce, digital wallets, banking, and investment.”
What Is The Business Of Paytm ?

Paytm is primarily a financial

technology company that offers a
wide range of financial services and
products. Its business includes:
• Payments
• Digital Wallet
• E-commerce
• Banking
• Investments
• Insurance
Paytm Competitors
Promoter of the
company
The founder and CEO of
Paytm is Vijay Shekhar
Sharma. He is the main
promoter of the
company. Other notable
investors in Paytm
include Alibaba Group,
SoftBank Group, and
Berkshire Hathaway.
Purpose Of The Company

Paytm's initial public offering (IPO) was aimed at

raising funds for the company's growth and
expansion plans. The purpose of the IPO was to
provide liquidity to the existing investors and
shareholders, including the founder Vijay Shekhar
Sharma, who would sell some of their shares in the
IPO. Additionally, the IPO was aimed at enhancing
Paytm's brand and reputation in the market and
providing an opportunity for retail investors to
participate in the growth potential of the company.
Merchant Banker of the Paytm

Goldman Sachs

JP Morgan

Morgan Stanley

Citigroup

ICICI Securities
 PAYTM Financial Statement Analysis

● Net profit
● Improvement in company's profit is primarily due reduction in its expenses. The company has cut down
its spending on discounts, cashbacks and promotions, which helped in reducing losses by 30% however,
it also impacted revenue negatively, while 5 year industry average of net income growth is 30.15%.

● EPS
● EPS of the company is negative but is still improving as company has seen improvement in its revenue
due to increase in online transactions and has seen reduction in operational expenses including rewards
and other promotional expense.
● Market share
● Paytm's market share across Consumer to Merchant Wallet Transactions is around 65-70%, while rest is
covered by its competitors.
● Revenue
● Over the last 4 years, revenue has grown at a yearly rate of 42.17%, as company is continuously
innovating its services and adding news products to its buckets like ticketing services. Now company is
looking start "buying via gold" services.
Share pricing:

Paytm fixed an offer price of ₹2,150 apiece for its initial share-sale, the top
of its price range, in its ₹18,300 crore initial public offering (IPO), a
prospectus showed on Friday. Paytm had priced its shares in a price band
of ₹2,080-2,150 per share, valuing the company at ₹1.39 lakh crore at the
upper end of the price band.
Its initial share sale received bids for 9.14 crore equity shares against the offer
size of 4.83 crore shares. The Paytm IPO closed with 1.89 times subWhile the
portion set aside for retail investors was oversubscribed 1.7 times, that for
institutional buyers received demand for 2.8 timesscription.
 Top takeaways from Paytm’s draft IPO filing

● Pre-IPO lock-in
● Large investors will sell shares
● Paytm will remain foreign-owned
● Losses to continue: Paytm has made a net loss for the past three years and expects this to
continue for the foreseeable future. In FY20 and FY21 it reported losses of Rs 2,943 crore Rs
1,704 crore, respectively.
THANK YOU