IPO Proceeds Usage
- Addresses Large Market Opportunities
- Builds Innovative Technology
- Expansion in Merchant Network
- Reduction in Losses
- Loss Making Company
- High Burn Rate
- Stretched Pre-IPO Valuation
Paytm has been in the limelight since it announced its mega entry into IPO. yeah well, many investors right now are excited with the announcement but do you know the process for Paytm IPO apply?
We all are well aware of the Paytm app, which initially started as a Fintech organization offering payment gateway to its customers. But lately, it has entered the stock market space as well.
Here as we’re talking about Paytm IPO, let’s learn about it.
One97 Communications recently shared the prospectus for its IPO of Rs. 18,300 crores. The IPO will include the issues of new shares worth Rs. 8300 crores with the offer for sale of Rs. 10,000 crores.
The interesting part is that the company is greatly supported by the world’s renowned investors like Alibaba, China’s Ant Group and Japan’s SoftBank. With Alibaba owning about a 7.2% stake in One97 pre-IPO.
Talking about numbers, one should know that the company One97 recorded a loss of Rs. 16.96 billion while the revenue slipped from 14.6% to 28.02 billion rupees.
After understanding about this IPO, why don’t we look into the steps of how you can avail this opportunity and reap the fruitful benefits of the same.
How to Apply for Paytm IPO Online?
Well, we are well aware of Paytm’s capabilities in terms of tech services, hence it is worth noting that this Organization is once again offering a seamless digital method to apply for IPO.
Yes, the process is completely online.
No matter what stockbroker you are with, it is always important that it gives you updates on the latest IPOs such as the IPO date, issue price, and other important data so that you can get a better IPO review and accordingly can invest and avail the benefits.
So, to apply for the IPO, the foremost task is to open a Demat account with the renowned stockbroker.
Not having a Demat account, open it now for FREE by filling in the basic information in the form below:
After opening a Demat account, log in to your app say for example Angel Broking mobile app,
Once you open the app, you’ll be able to find the IPO section in which you’ll see the list of new and upcoming IPO.
As soon as the IPO date is announced, just select the IPO by clicking on Paytm IPO.
You can simply apply for the IPO via the ASBA method, where the amount you invested gets blocked in your bank account until the shares get allotted to you.
How to Apply for Paytm IPO through ASBA
Many of you must be wondering what ASBA is. In simple terms, it is abbreviated as the Applications Supported by Blocked Amount.
This method has made lives much easier for investors to apply in an IPO.
- Login to your trading platform
- Select IPO Application from the New and Upcoming IPO section
- Fill in the details like quantity, bidding price, etc
- Enter the lot size and place three bids to maximize the chances of allotment.
Make sure you enter the details as per your KYC verification while opening the Demat account.
Let us suppose, you place a bid for buying 1 lot at the price of Rs.2080, another bid of 1 lot at Rs.2100 and the third of 2 lots at Rs.2150.
Finally, click on the “SUBMIT” button. The corresponding amount gets blocked in your account until the shares are allotted. And if by any chance you don’t get the opportunity, the same amount will be refunded.
Let’s move on to the second method,
How to Apply for Paytm IPO using UPI?
Now, this is actually not the defined method to apply for the IPO, in fact, it is the mode via which you want to make the payment for IPO investment.
We all know since the emergence of Paytm, UPI payments have taken their way among the most popular and convenient payment methods.
UPI is known for payment security, especially the BHIM-UPI. So here’s how can you as an investor apply for IPO using UPI;
- As mentioned earlier, you need to have the BHIM-UPI app installed on your phone.
- Set up the application by mentioning the preferred language and linking your bank account with it.
- Create MPIN (Mobile banking personal identification number). A unique password for security purposes and to ease out the process of transactions.
- You are registered.
Also, you can apply for the IPO offline. To apply for the Paytm IPO via offline mode, download the form by clicking here.
The form is available on the NSE website two days before the IPO opens.
You can download the form on November 05, 2021. Also, you can download more than one form to apply IPO using different demat accounts.
Wondering how much you need to invest in the IPO, as per the rule, one needs to do the minimum investment of ₹15000 and a maximum of up to 2 lakh from one PAN card, but every IPO has certain price bands.
Check out the issue price and price band of Paytm Money to get ready with the investment amount before the issue date.
Now that you are all set to apply for the Paytm IPO, it becomes essential for you to know about the dates associated with the application and listing of the company.
The complete calendar of the Paytm IPO Date is given in the table below:
Should you invest in Paytm IPO?
Finally before investing you must actually look into the past record of the company, as investments are subject to market risks. So you need to get a thorough fundamental analysis to check how sustainable and reliable the company is.
Here we’re talking about Paytm, a popular fintech company. Hence, numbers define the reliability of any organization, as far as valuation is concerned, Paytm has recorded growth from $7 billion in 2015 to $16 billion in 2020.
Not just that, the company’s net worth in FY2021 is ₹65348 million. And from the table above it is clear that Paytm’s net income has reduced to ₹31868 million in FY2021 from ₹35407 million in FY2020.
Even though the company has recorded an overall loss in the current financial year, it is worth noting that the loss also has reduced over the years.
Although it would be unfair to judge the company’s capability and sustainability right away as it is still in an evolving phase as the investors are looking forward for investment by considering the growing customer base, and user engagement in its app and products.
Hence to get a clear idea, you might also go through the SWOT analysis of the organization, analyze your financial goals and hence decide for Paytm IPO apply.
In case you wish to apply to this IPO, here is the form for you and we will assist you in the process ahead:
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