Tag: paytm

After releasing several bearish reports on Paytm, global brokerage firm Macquarie has given a double upgrade to the stock and raised its target price by 80% to Rs 800. Macquarie has upgraded Paytm to 'outperform' from 'underperform'.Due to a sustained reduction in losses, the once bearish analysts say they have seen a “very visible change in the approach of management to deliver profit” by the firm, owing to its recently reported core Ebitda profitability. "Our view at Rs 2,150 is different from our view when the stock is priced around ~Rs 600. Since our last target price cut, Paytm has positively surprised on the distribution of financial services revenue by a wide margin and has also managed to control overall expenses and charges," Macquarie analysts Suresh Ganapathy and Param Subramanian said. Read more

Shares of One97 Communications, the parent company of Paytm, on Friday, zoomed more than 7 percent to Rs 543.45 as Dalal Street turned optimistic after the management's strong commentary on growth and profitability.“Management stated that the journey to attain operating profitability (EBITDA before ESOP cost) via consistent margin improvement has exceeded its expectations in the past few quarters,” ICICI Securities, which attended the company’s analyst day meet, said in a note. Meanwhile, the company on Thursday (1 December 2022) informed that at present it makes a net payment margin of 7 to 9 bps of GMV on processing. Of which UPI gives us 3 to 4 bps and other instruments give 15 to 18 bps. "Since UPI is growing faster than other instruments, we expect the blended margin to stabilize at 5 to 7 bps," the company said. Read more

One 97 Communications Ltd., the operator of India's largest digital-payments provider known Paytm, has capped the worst first-year share plunge among large IPOs over the past decade -- and the pain is worsening. The stock saw a fresh bout of selling recently after Macquarie said Jio Financial Services could be a formidable threat to fintech like Paytm. The company, whose founder compared its challenges to those faced by Tesla Inc. shortly after the listing, has seen its stock erase 75% of its market value one year after its $2.4 billion offering, the largest on record at the time in India. The dive is the steepest first-year slide globally among IPOs that raised at least the same amount since Spain’s Bankia SA’s 82% drop in 2012, data compiled by Bloomberg show. Read more

Paytm share price jumped more than 3.5 percent to Rs 800.05 apiece on BSE on Monday, after the shareholders of One97 Communications approved the re-appointment of Vijay Shekhar Sharma as managing director and chief executive officer of the company for five more years. Around 99.7% of the shareholders of Paytm's parent, One97 Communications, have voted in favor of a resolution to reappoint Vijay Shekhar Sharma as MD & CEO of the company and approved his remuneration. All seven resolutions passed by the Paytm board, including the reinstatement of Madhur Deora as the executive director, president, and group chief financial officer, the inclusion of Elevation Capital’s managing partner Ravi Adusumalli as a board member, and the decision on Sharma’s and Deora’s remunerations were approved by the shareholders. In February this year, the Securities and Exchange Board of India (SEBI) made it voluntary for India Inc to have a separate chairperson and managing director or CEO. In its statement. Read more

Shares of One 97 Communications, which operates Paytm, jumped 3 percent to Rs 624 apiece on BSE on June 15 after the fintech major reported rapid growth in its lending business, with loan disbursals in the April-May period jumping 471 to percent compared with the corresponding period a year ago. Paytm shares gained on the company's strong operating update. The stock price has been reeling under pressure ever since it was listed on the stock exchanges in November last year. Paytm stock price has lost 60 percent from its listing price and more than 70 percent from its IPO price of Rs 2,150 apiece. The digital payments company said its lending unit was at an annualized run rate of more than Rs 23,000 crore ($3 billion at $1 = Rs 75) of loan disbursements in May, as it continued to gain momentum in its operating performance. Read more

The Indian benchmark indices started today's(14th March 2022) session on a positive note. Despite uncertainty on developments around Russia-Ukraine talks, The BSE Sensex rose 300 points to 55,850, while the NSE Nifty was at 16,681, higher by 51 points. On the Sensex, HDFC Bank, Infosys, ICICI Bank, HDFC, SBI, Asian Paints, Tech M, Bajaj Finserv, and Wipro were the leading frontrunners, up between 0.5-2 percent. On the flip side, Hindustan Unilever, HCL Tech, Dr. Reddy's, M&M, Reliance, PowerGrid, IOC, BPCL, Tata Motors, SBI Life were the top losers, down up to 1.6 percent. The broader markets were also firmly up with the BSE MidCap and SmallCap indices up to 0.4 percent higher. Read more

Shares of One97 Communications, the parent company of digital payments major Paytm, hit a new low of Rs 1,153, down 6 percent on the BSE in Monday’s intra-day trade after global brokerage Macquarie maintained its ‘underperform’ rating on the stock and reduced its target price (TP) to Rs 900. It also suggested that the company’s future earnings growth may be worse than it had earlier forecast. The target suggests a 58 percent downside over the issue price of Rs 2,150. From prevailing levels, the target suggests 26 percent downside potential. Shares of Paytm have had an abysmal journey on Dalal Street so far since listing in November last year. The brokerage firm has also cut its earnings projections for Paytm. “We are roughly cutting revenue estimates for FY21-26E on an average by 10% every year due to lower distribution and commerce/cloud revenues offset partially by higher payment revenues,” Macquarie said. Read more

Shares of One97 Communications, the parent company of digital payments major Paytm, slipped 13 percent to Rs 1,297.70 on the BSE in Wednesday’s intra-day trade as the company's institutional investors' one-month lock-in period expired today, December 15, 2021, adding to the pressure following a dismal debut last month. Paytm shares crashed more than 27 percent in India's largest public offering last month. Since the listing on November 22, the stock has logged losses for 13 of the 18 sessions and has never touched its IPO price band of Rs 2,080-2,150. Paytm, which counts SoftBank and Ant Group among its backers, raised $2.5 billion in its IPO, of which $1.1 billion was from institutional investors. Parth Nyati, Founder, Tradingo said Paytm may find buying interest at lower levels but it may remain in the Rs 1,300-1,700 range until the market determines its right value. Read more

In what was supposed to be the country’s breakout year the shocking two-day plunge by India’s Paytm after its initial public offering casts a shadow over the prospects for technology firms preparing to go public. Retail investors, who bought an unprecedented amount of shares in Paytm’s parent One 97 Communications Ltd., have seen more than 35% of their value wiped out in just two trading sessions. Further losses may be in store if the stock slumps from its Monday closing price of Rs 1,359.6 to the Rs 1,200 predicted by Macquarie Group Ltd. “The event in a way will nudge people to be cautious and not take the market for granted by blindly placing bets,” said an investment expert. “It is important that a company’s story and prospects are well understood by investors”, he said. Read more

The parent company of Paytm, One 97 Communications, disappointed IPO investors as the unicorn's stock got listed today(18th Nov.2021) at Rs 1,950 on NSE, a discount of 9.3 percent over its price of Rs 2,150. At BSE, the stock got listed at Rs 1,955. The mega share sale of Paytm was the largest ever initial stake sale by any domestic company via the primary route. The company raised as much as Rs 18,300 through its IPO. The initial stake sale of One97 Communications was open for subscription between November 8-10. The company sold its shares in the range of Rs 2,080-2,150. Read more

Paytm officially revealed for the first time today(28th Oct.2021) that its IPO will be at a $19.5 billion to $20 billion valuations. Paytm was valued at $16 billion when it raised funds two years ago. The IPO was priced at a lower valuation so that more people can participate, the company said. Founder and CEO Vijay Shekhar Sharma said, "Our life is going to become QSQT now or quarter se quarter tak (from one quarter to next)." He added that there is no interesting acquisition target on the horizon and the company is more focused on building itself as compared to buying. "But never say never," he added. The payments unicorn claims to have become contribution margin neutral, meaning it is recouping its cost from operating revenue. The company's contribution margin grew 198 percent to Rs 245 crore in Q1FY22 compared to the corresponding quarter in the previous financial year. Read more

The amount of money raised in IPOs this year in India has reached $8.8 billion, already surpassing the totals of the past three years. At the current pace, 2021 would exceed the all-time record of $11.8 billion. Founders, bankers, lawyers, and advisers are racing to cash in on fervent demand for fresh public offerings. The performance of recent IPOs, such as Zomato, has fed the enthusiasm. Newly listed Indian stocks are beating the benchmark Nifty 50 Index by more than 40 percentage points this year, the biggest gap in seven years. Oyo Hotels & Homes Pvt started work last week on its draft prospectus and aims to file in October, according to people familiar with the matter. The ride-hailing leader Ola and fintech startup Pine Labs Pvt have also begun talks with investment bankers, according to other people aware of the situation. Read more

Digital payments major Paytm will be amongst the top 10 most-valued financial (banks included) stocks in the country when it gets listed later this year. According to investment banking sources, the company is looking at a valuation of between $20 billion and $25 billion in the initial public offering (IPO). The parent company of Paytm, One97 Communications, today(16th July 2021) filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India. The company is looking to raise Rs 8,300 crore by issuing fresh shares in its maiden stock market offering. The IPO will also comprise Rs 8,300 crore worth of secondary share sale from existing shareholders, including founder Vijay Shekhar Sharma, China’s financial powerhouse Ant Financial and e-commerce giant Alibaba. Read more

Paytm, digital payments and financial services firm has filed a draft red herring prospectus (DRHP) with market regulator SEBI, to launch Rs 16,600-crore IPO.The Paytm IPO would comprise a fresh issue of shares worth Rs 8,300 crore ($1.1 billion) and an equally large secondary share sale, the Noida-based fintech startup has told the Securities and Exchange Board of India (Sebi). On Monday, Paytm received the approval of its shareholders to raise capital through IPO, which is billed to be the country's biggest public offer of ₹16,000. "Shareholders have approved all the proposals at the extraordinary general meeting. The shareholders have approved the proposal to raise capital and the fresh issue of shares of up to ₹12,000 crore during the IPO. The secondary raise will bring the total to ₹16,600 crore," news agency PTI reported, citing a source. Read more

Amid tensions between the two Asian neighbours and a toughening competitive landscape, Chinese fintech giant Ant Group is considering selling its 30 percent stake in Indian digital payment processor Paytm according to some sources. Financial details of the possible transaction have not been firmed up and Ant, the Alibaba-backed payments-to-consumer credit behemoth, has not launched a formal sale process yet. Paytm, which is also backed by SoftBank Group Corp among others, was valued at about $16 billion during its latest private fundraising round a year ago. At that valuation, Ant’s stake in the Indian firm is worth about $4.8 billion.