There were no takers for Paytm shares of face value 10 when they were trading around 10000 until May in the unlisted market. The IPO has come at twice that price. Soch kar samajh kar nivesh kar :)
Profit After Tax: FY19: -4230 FY20: -2942 FY21: -1701
Though it seems that their loss is reducing, their total income is still in a downwards trend. (Even when the use of Digital payments is increasing in India). So the only contributing factor seems that they are reducing their expenses. They can only reduce their expenses to a certain point and not more than that. So will be the future of this company? If their Income keeps reducing, and with rising competition, will they ever turn profitable?
Burn ratio is going down. So essentially it trying to be a super app like china apps alibaba/ant. They hope they can mine the huge customer data 30 crore people and lend them money and other services etc. But all this potential only, company not proven on good execution empirically. But why miss a story or FOMO, just put insignificant amount of money for you and forget for next 3 years.
They have cut down on mktg and promotion expense, which seems obviously due to the IPO. This indicates lesser freebies for users, which means debatable future prospects if they continue with a conservative approach. And if they don''t, then the losses might continue for a long time.
238. Manup| Link| Bookmark|
November 10, 2021 1:30:21 PM
Top Contributor (400+ Posts, 200+ Likes)
Those who are depending on Retail Subscription Nos., be cautious and wary as some of those retail subscription may not be finally approved by investors.
QIB, NII, Bankers etc are playing with PUBLIC money!! Remember, few fund houses offered to tender Vedanta shares @87 during buyback exercise!!! Fortunately buyback failed!! RII is putting his OWN money on the block!! Take your own considered decision while applying for loss making company IPOs.
229. ipobull| Link| Bookmark|
November 10, 2021 12:29:02 PM
IPO Guru (1000+ Posts, 1000+ Likes)
Paytm IPO is bound to fail. Nykaa, who priced it around 1000, is hogging all the limelight. First resistance for it should be at 2500. Experts what will happen if the issue remains undersubscribed. Can they extend the timeline/ reduce the price?
1) SEBI mandates 90% minimum subscription on closing date. 2) IPO price could be lowered. 3) Bankers might agree to buy unsold shares. 4) They could be vary between categories (HNI over, retail under, etc)
229.2. PSR| Link| Bookmark|
November 10, 2021 1:01:36 PM
IPO Guru (1300+ Posts, 700+ Likes)
Finally QIBs will rescue the issue.
The issue will be fully subscribed and the question of under subscription as a whole, will not arise.