It is the season of IPOs. Have you been trading for quite some time or have you been newly interested in this market? This is the right place for you to know more about the IPO and trading in general. In this particular article, we will talk about the pros and cons of the Paytm IPO. Paytm is the leading financial service in our country. Recently, it had announced launching its IPO and raising capital to invest in acquiring assets and partnerships. Therefore, without further ado, let’s list down the pros and cons also that investing will be easier for you.
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.
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.
Paytm IPO Pros
The app has been around for almost a decade. The reason for its prolonged operation is the trust that it has gained due to the customers’ services. The app has become reliable for customers through its easy access, reach and range. The leading financial service provides a wide range of services such as DTH recharge, grocery shopping, several payments, loans, etc. The payment instruments are also better. In addition, the technology and innovation of the product have helped the app to grow better and successfully. The company operates through self-reliant network services therefore, there is low cost. Due to this, it has the advantage of lending services to its customers at a low price and it benefits the profits of the company as well. The company has an excellent management system therefore, it can handle a wide range of services, merchants, and customers. The promotion work of the company is also been running on successful grounds. The reason why it has gained several new customers.
Paytm IPO Cons
The app has competition from several leading services from the industry such as Mobikwik, Freecharge, Phone pe, etc. These are beneficial and profitable for the customers as well. In addition, the company had faced a loss in revenues for some years. Therefore, this will also create new doubts in the mind of the investor. Along with this, the pandemic has also generated losses for the company. The company is highly dependent on outsiders and other financial institutions for investment and financial services. The transaction volume is high due to the previous customers in comparison to the new customers in the platform. Due to the competition from the market, the company is dependent on other parties for the growth of its business.
As we have listed the pros and cons of the IPO, we recommend you calculate all the aspects before investing. In this upcoming IPO season, you can access different articles and stay informed from our website
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