![]() Paytm, which will open the bid for its shares for three days starting November 8, has kept the share price range between 2,080 to 2,150 Indian rupees ($27.9 to $28.85). Abu Dhabi Investment Authority, Dutch pension investment firm APG, City of New York, Texas Teachers Retirement, NPS Japan, University of Texas, NTUC Pension out of Singapore, University of Cambridge, UBS, Mirae Asset and Standard Life Aberdeen also participated in the anchor round. The investments of $140 million by Blackrock and $126 million by CPPIB are also the largest by institutional investors in an Indian IPO. Backed by Alibaba, Berkshire Hathaway and SoftBank, Paytm was valued at $16 billion in its previous funding round in the second half of 2019. The startup, which offers a range of financial services, is seeking a valuation of over $19 billion in the IPO, it said in a call with reporters last week. With Wednesday’s investment, Paytm has now secured nearly half of the $2.45 billion capital it is looking to raise from the IPO. ![]() ![]() Bidding for shares of Paytm was oversubscribed by 10 times, according to a person familiar with the matter. Nevertheless despite earnings cuts, the target prices of brokerages still indicate upside for the stock.Paytm has raised $1.104 billion in India’s largest-ever anchor round as part of its initial public offering, which is also shaping up to be the nation’s largest, as the poster child of the Indian startup ecosystem moves closer to listing in the public markets.īlackrock, GIC, Canada Pension Plan Investment Board, Birla MF are among the investors who financed the anchor round, Paytm said in a filing with a local exchange. For postpaid loans, disbursement run rate is expected to halve, which is a significantly material downward revision.Īlso read- Sun Pharma share price declines as it revises bid to buy balance Taro stakeĪnalysts at Motilal Oswal Financial Services though remain watchful on the longevity of these measures and the outlook in low-ticket unsecured loans, they had trimmed their FY24 and FY25 disbursement estimates by 15%-18%, resulting in an 11-16% cut in their adjusted Ebitda over FY24 and FY25 (estimated). Also for merchant loans, the growth would be 30-45%, which is also materially lower than the earlier guidance in the second quarter call. Shivaji Thapliyal, Head of Research and Lead Analyst, Yes Securities said that Paytm has stated that for personal loans, the growth would be 15-20%, which is materially lower than the earlier guidance in the 2Q call. Given the slightly abrupt pullback on a key growth lever, analysts expect stock price to react negatively until growth trends stabilize and new strategy plays out Since the resurgence of Paytm stock price since CY22 lows was led by strong uptick in loan distribution business revenues and operational efficiencies thereof. At the same time, Paytm Postpaid also serves as a funnel for PL disbursements and this sharp cut could impinge on medium term growth rates on Personal Loans. While we will closely monitor the impact of this strategy of raising ticket sizes meaningfully, near-term growth on lending business and thus financial services revenues is likely to get impacted. ![]() While Paytm also announced expanding its credit distribution business to enhance focus on higher ticket loans for consumers and merchants in partnership with banks and NBFCs however overall analysts concerns remain elevated on shift in focus from its small ticket size BNPL loans.Īnalysts at JM Financial commenting on high ticket personal and merchant loans had said that these newer loans will be directed only to well-tested, prime segment customers on the platform. Also read- Cyient stock more than doubled investor wealth in less than a year ![]()
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