New Delhi: One97 Communications-owned Paytm opened its initial public offering for subscription today. This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-crore IPO had been subscribed 10 percent on November 8, the first day of bidding, receiving bids for 48.82 lakh equity shares against offer size of 4.83 crore shares.
The portion set aside for retail investors was subscribed 54 percent, while the reserved portion of non-institutional investors was subscribed 1 percent, and qualified institutional buyers have put in bids for 2,406 shares against 2.63 crore shares set aside for them.
“The Paytm IPO is valued at 43.7x FY21 price-to-sales and 36.7x FY22 annualized priceto-sales, which is at a discount of ~12% to the recently-listed unicorn, Zomato. While there is no listed peer available for Paytm in the domestic market, we believe high valuations for unicorns like Paytm that has created significant scale and brand equity, are likely to sustain,” said Reliance Securities.
“Further, a strong 33% CAGR in gross merchandise value over FY19-FY21, despite the pandemic, vindicates Paytm’s leadership and brand value. This along with 17% estimated CAGR in digital payments in value to $40 trillion during FY21-FY26E indicates a sustainable growth in the long run. Hence, we recommend subscribe for the long-term perspective,” the brokerage added.