It is highly surprising that a continously loss making has fixed Rs 2150 as issue price for a share having FV of Rs 1 only in its IPO. It means at FV of Rs 10 issue price comes as Rs 21500/- per share. A huge amount of profit for selling share holders/promoters and small investors will make such huge profits for others . Is this huge issue price is justified on any reasonable ground. We are told about potential of this company that in future it will do miracle. No profit for last many years and they talk about future. In future more and more companies will come in market and may capture a good amount of business from this company. In present scenario it is worthless about talking future as future is always uncertain and in long term everybody is dead then what is the use of longterm.
Hope they can do every thing and anything - of course nothing illegal. I would like to know if the company can spell out if they wish to and hope to make profits and make dividend payouts on completion of one financial year of 12 months. If they do not fail to make payment towards renting their equipment, software, staff salaries, interest on loans they utilise, pay all taxes, other services, etc., I will be happy. But if they do not earn any surplus on their operations after paying the above expenses and/or pay me a dividend, it is not worth my money. They cannot just say, invest in our company and look at NSE or BSE quotes for returns.
Pharmeasy as smarting increased the Equity Shares number.. resulting into unlisted price around 3 digit - 100-110/- (valuation @110/- around $9B )
many people just look at the price .. 2 digit, 3 digit, 4 digit and compare... If similarly Paytm should had made 60.9 cr shares into 609 crs and its IPO band around 208-215.
We are in big cycle of Digital transformation and just like FAANG stocks with US stock Market even we will see few very large Digital companies being build by Indian Startup eco system finding huge value unlocking via IPOs. PayTM, OYO, Ola, Nykaa, Zomato, Policy bazaar are examples of these, cant say which one but few of these digital companies will be part of top 10 listed players in few years for sure. PayTM is one of the very unique opportunities we are getting. Dont miss out, even ace investor like Warren Buffet missed the digital rush in US as he felt these companies dont have any assets. But he agreed few years back that it was a Big mistake as their assets are also Digital and they are very difficult to replicate which is their Moat once they reach a critical mass
Very costly ,Rs.1 face value share with 2150 per share! My God , also issue size of ipo is very big....here ipo is good but price is very much high so suggest to avoid only !
So many newbies thinking face value = valuation. Face value is just a number for bookkeeping purposes and means absolutely nothing. You need to look at market capitalization to get the valuation of the company.
Experts are surely going to change recommendations to FF if this happens.
79. ipobull| Link| Bookmark|
November 2, 2021 12:52:02 AM
IPO Guru (1000+ Posts, 1000+ Likes)
The stock is priced very highly considering that the market share of Phonepe in digital payments is around 4 times that of Paytm as per July data. Its huge IPO size will certainly be a overhang on the stock though for me Face value does not matter much these days. The stock may give some instant listing gains depending on subscription levels, but its not a good one for long term.
This is the height of shameless greed! They have reported only losses till date and asking others to fill their coffers with atrocious premium. It is high time Finance Department of Government of India stepped in to rein-in these type of daytime robbers.
@Honey Bear - Are you comparing share prices of different companies!!? You probably think that MRF is the biggest company in India and 30 times bigger than Reliance.
72.3. sdz| Link| Bookmark|
November 2, 2021 7:02:27 PM
IPO Guru (1200+ Posts, 500+ Likes)
@Hatchens.. haha Good one
@Honey Bear.. Always compare Market cap of companies. Just share price tells nothing