Paytm’s valuation - around 26 times price-to-estimated sales for the financial year 2023 - towers above the benchmark S&P BSE Sensex Index on about 4 times. Valuation is likely to become the main sticking point for those seeking to tap the market. According to a Bloomberg report, Fintech Decacorn Paytm is aiming. Some companies that were seeking to benefit from the flood of transactions in India’s booming IPO market so far this year may now rethink the timing and pricing of their issues, according to Edelweiss Financial Services Ltd. Paytm eyes INR 22,000 Crores IPO near Diwali-2021: Report Tech Buzz. Paytm shares have fallen about 30% since it started trading last week, with a rebound on Tuesday not enough to erase losses from the two previous sessions. have fallen about 40% in the so-called grey market. The shares of Paytm rival One MobiKwik Systems Ltd. Planned smaller IPOs could have a harder time pricing shares if there is a reduced appetite for new listings. Paytms valuation - around 26 times price-to-estimated sales for the financial year 2023 - towers above the benchmark S&P BSE Sensex Index on about 4 times. Other sizable listings include API Holdings Ltd., the parent of online pharmacy PharmEasy, and logistics company Delhivery Ltd. Offerings on the radar include that of Oravel Stays Ltd., the operator of hotel-booking startup Oyo, which is looking to raise nearly $1 billion. ‘Pension Poachers’ Are Targeting America’s Elderly Veterans In other words, it cannot assume credit risk in any form.(Bloomberg) - At least a dozen Indian companies working on initial public offerings are now under extra investor scrutiny following the disastrous debut of digital payments startup Paytm, the country’s biggest ever IPO.Ĭhina Cash Flowed Through Congo Bank to Former President’s Cronies Hence, distribution/cross-selling has been the way to go. Low possibility of bank license The Paytm Payments Bank is not allowed to lend as per RBI license conditions, so the company cannot directly lend to its customer base. What triggered this red flag is the fact that 5 of the comapny's senior executives quit ahead of its DRHO filing in July. It also noted the high attrition rate in the senior management of the company. Macquarie states that split between these will bring more objectivity to the board. All posts are managed by the founder Vijay Shekhar Sharma himself. Besides, there is no distinction between the chairman and managing director and CEO of the company. Company's governance and risk The report beleives that a board consisting of only 8 members with 6 of them based outside India is not necessarily an ideal structure. Paytm shares have fallen about 30 since it started trading last week, with a rebound on Tuesday not enough to erase. have fallen about 40 in the so-called grey market. These players also have strong two-way customer-merchant ecosystems with strong consumer value propositions. Planned smaller IPOs could have a harder time pricing shares if there is a reduced appetite for new listings. It also expects that the company's free cash flow (FCF) position will not turn positive until financial year 2030.Į-commerce is a segment where Paytm has had to compete head-on with big players like Amazon and Walmart-owned Flipkart. ![]() This can be clearly implied from the fact that although Paytm's $2.5 billion offering was priced at the top of the indicative range, demand was much weaker than other recent stock sales, as Paytm has lost some market share to Google and Flipkart's PhonePe. So, the competition is quite evident in the certain categories like financial products or buy now pay later (BNPL) space. 'Competition may drive down unit economics' The report further notes that Paytm's competitors like Amazon, Flipkart, Google and others are offering almost the same services. ![]() Consequently, it has kept a target price of Rs 1,200 for the stock as against its issue price of Rs 2,150, implying over 40 per cent downside risk. ![]() The research firm believes that achieving scale with profitability will be a big challenge for the company. According to a Macquarie Research report, Paytm's business model lacks focus and direction.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |