IPO’s are private companies(old or new) launching their shares to the public. These shares can also be made accessible through the shareholders. It’s available in the open market for trading. The purpose is to raise capital for the original company while also benefiting the public. Several top companies like Nykka, Policy Bazaar have announced to launch on November 1st. Paytm, one of the leading providers of financial services will be launching its IPO next week and if you’re interested in trading then this is the right place for you. Without further ado, let’s jump into the details of the above.
About Paytm
The digital payment service began in August 2010. The owners of the service are – the founder Vijay Sekhar Sharma and ONE97 communications limited. It was originally located in Noida. Initially, the app provided DTH and prepaid mobile recharge services. Three years later, it also included landline and postpaid mobile recharge services. Gradually, this e-commerce diversified to include online water, gas, cab, and bus tickets. The app is available in 11 different languages. In 2016, the QR code payment method was launched. Since then, it’s become more accessible and easier for the general public. This has been especially useful during the pandemic.
Currently, this financial and e-commerce service has a total of 58 million account holders. The investors are some of the big names in the industry like- Softbank and AGH holders. The company is valued at $19.9 million.
Paytm IPO
The One97 Communications Limited company has announced to launch its IPO from November 8-10. The price band was announced on 27th October. The initial stage ends on 10th November. The company has planned to raise a massive amount of Rs. 18,300 cr, making it the largest ever IPO of India. This is twice the amount as last year when it originally began. The individual share is available for approx Rs. 2200 and the minimum quantity is 6. You can apply for a maximum of 15 lots and 90 shares. You have to keep certain important dates in mind. On November 15th, the lots will be finalized and the next day (16th November), the refund process will begin. The listing will be made available to you from November 18th and finally, it ends on the 25th of November. You can access it directly through the UPI of the app.
The shares launched are reserved for Institutional and Non-Institutional buyers. Example- 75percent for the Institutional and 15 percent for the non-institutional. It has also managed to reserve 10 percent of the shares for retail investors. The financial service company wants to consistently maintain its market share. In addition, it wants to increase the profitability, assets, and productivity of the company. This has also been exclusively mentioned by the founder himself. So, the IPO will help them to acquire new shares and assets in other sectors. It’ll help them to form a base and grow into different areas. In addition, they can capture more customers, begin new partnerships and grow more in the technological field. It will also help the previous shareholders to benefit from it.
How to apply for Paytm IPO
We’ll list down some easy steps for you to apply for the IPO. This will help you to navigate through the app hassle-free and enjoy the trading process. So, here are the steps
- Download Paytm Money. If your Paytm account is not KYC-linked then first apply for it.
- According to the lot size and the number of shares you want to buy, you have to enter the bids. Be careful while entering the details of the bid. You can go for the original or the cut-off price of the bid provided by the company. You have to keep in mind that a maximum of three bids will be accepted.
- Enter UPI id on the Paytm Money App. Then fill the application and click on Submit. This will help you to directly access the service through the UPI code. Therefore, it is convenient for the customers and easily understandable.
- Click on the Block Funds request notification from the app. You have to be extra careful with this step. The funds in your account will be blocked until the allotment process is through. The limit is Rs. 2 lakh per transaction on the UPI.
- Once the shares are allotted, the amount will be directly debited from the account. However, if the shares aren’t allotted then do not be worried! If there’s no allotment then the blocked funds will be available to you again. In short, your account will be unblocked.
The listing will be made available on NSE and BSE. Here’s some good news for DMAT account users. You can also apply for the IPO application directly through the app without further downloading another app. In addition, you can log in to the online bank account, fill in the details of the application and submit it directly or through a broker.
Risks
In the past, the company has experienced several losses due to advertising and marketing campaigns. However, it has shown great improvement in its revenue shares and capturing market. Especially, the consumer services are top-notch which has proved to be the real reason for its growth. This was visible during the pandemic. In addition, during the unlock phases it has been a convenient source for payment. Example- paying for online or offline grocery delivery, education fees, movie tickets, booking flight and train tickets, and the likes. All in all, the company has proved to be valuable for the customers through the easy-to-access and convenience feature.
Stay Tuned For More on Paytm IPO: About, How to Apply and Risks InvolvedNewson
