The market slump after the launch of Paytm on exchanges has raised doubts about the upcoming IPO, including that of smaller rivals. MobiKwik And the valuation of hotel aggregator OYO has come close to the scrutiny of investors. Indian companies have raised a huge amount of $9.7 billion through IPO During the first nine months of the year – the largest in the same period in the last 20 years. After the listing of Zomato in July, its share price rose 66 per cent, while the cosmetics-to-fashion platform hero Its stock initially saw an 80 percent increase. But companies like to be overvalued Paytm Pointers point to a market trend that may be volatile. It could also reduce investors’ appetite for risk and perhaps life insurance giant LIC’s own IPO – which is expected to be the biggest Indian IPO in history – to take place by the end of March 2022. Caution may increase.
Paytm shares fell 18.57% to Rs 1,271 on Monday and ended the day down 12.9% at Rs 1359.60. The stock is now down more than 36% from its issue price of 2,150 per share. The company’s market cap stood at just Rs 88,184.67 crore as against the IPO valuation of around Rs 1.39 lakh crore. The sharp sell-off in investors’ assets has already wiped out Rs 51,194 crore.
MobiKwik may delay its IPO as it struggles to find foreign institutional backers at the right valuations amid growing doubts about the fintech business model. The company had in July filed its draft IPO document for the Rs 1,900-crore IPO, which was cleared by SEBI in October and the company was aiming to launch the offering before Diwali. According to the Economic Times, MobiKwik’s valuation has fallen 30-40% and it has been advised not to go ahead with its IPO as it may be difficult to get enough demand from institutional investors.
Analysts, who have expressed concern over the IPO valuation of loss-making Paytm, have cautioned that a “foty” valuation with an unclear business model may not end well in the current market. Note: Retail investors have already wiped out more than 35% of their value in just two trading sessions. While there may be further losses for the stock, its true price will be discovered after the 30-day lock-in period for anchor investors is over.
BharatPe founder Ashneer Grover is confident that there will be no fin-tech IPOs in the current market, while Ola and Oyo’s IPOs are also unlikely to make a great start. “I am very clear. This takes the wraps off the IPO market for this cycle. Investors are sitting in the US. Those who want to invest in the Indian market will ask how the market is right now. Then they will ask how the biggest The IPO has performed. That is down 40 per cent. It was also the biggest start-up with the highest valuation. People will say you missed out (get a discount on this). Many DRHPs will be liquidated now. Especially fin- In tech, I’m 100 percent sure,” Grover told CNBC-TV18.
“Paytm is continuing its journey south after getting listed on the back of liquidation by retail investors who were betting for listing gains. If we talk about the future outlook it is still uncertain as the market The timing of its core business and profitability is not clear. … Paytm comes out with a high valuation, where it was seeking a market cap of Rs 1.4 lakh crore against revenue of Rs 3,000 crore, while Bajaj Finserv, which Already listed fintech company, doing business with proven track record of sustained profits and growth. At a market cap of Rs 2.9 lakh crore against revenue of Rs 63000 crore, Paytm disrupted the payments industry post demonetisation. Delivered, but it got hampered by UPI. Paytm’s biggest strength is strong brand positioning as well as its huge customer base, though there is no clear low entry barrier gap with businesses… Apple to Apples for Paytm There is no comparison, but there are better-listed fintech companies that offer them with reasonable Available e-assessment with certainty of growth,” said Santosh Meena, Head of Research, Swastika Investmart.
Even before the commencement of trading, Macquarie Capital Securities had an “underperform” rating on Paytm and the price target was Rs 1,200, which was 44% lower than the IPO price. “Dubbing across multiple business lines precludes Paytm from being a category leader in any business except wallets, which are becoming irrelevant with the meteoric rise in UPI payments. Competition and regulation are the key to unit economics and/or growth in our medium term. Will reduce the chances. See,” the brokerage said.
Paytm’s Rs 18,300-crore IPO managed to garner just 1.89 times subscriptions, with mutual funds and wealthy investors largely staying away. The offer ended this offer, thanks to large investments from foreign funds such as BlackRock and Canada’s CPP.
“If you buy something at the wrong price, that bad decision haunts you for a very long time. My favorite example is Microsoft. It was a great company in 2000. If you bought it in 2000 for $60 dollars, that’s it.” You have to wait about 16 years just break even till 2016. In that context, if at 20 billion Paytm is saying I am 65% of Axis Bank, 40% of Kotak Bank, 30% of ICICI Bank and HDFC Bank 20%, so I really don’t believe it’s even remotely possible. Let’s look at some quick points here; they want to be this super app, but even after seven, eight years of existence, they There is hardly any break in the brokerage in the banking sector. I agree that payments bank is a limiting factor, but the average balance in a payments bank account is around Rs 500, do whatever you want with it. There is hardly any dent in me. I can buy dreams but there is only so much I can pay for,” said Anurag Singh, Managing Partner, Ansid Capital Told ET Now.
According to Richa Aggarwal, Editor and Research Analyst, Hidden Treasures, new markets like Zomato and Paytm aren’t really offering a unique value innovation to create. While they have really incorporated technology and value to users, they have not yet created any value for themselves in the process and are also dealing with great competition. is for zomato Swiggy, There is competition for Paytm from Google Pay, PhonePe, Razer Pay and others.
“The real differentiators create sustainable value and virtuous feedback loops. However, most startups, despite claiming to be disruptive, are growing on borrowed money, creating unstable and non-self-sustaining business models,” said Agarwal.
Therefore, investors will now be more cautious and risk averse especially for loss-making new age technology companies. As the IPO was going hot, these stocks are likely to suffer the most from the correction in the markets, which is why the shares of the recently listed Policybazaar and Zomato were down in the last four sessions. Note: Both these companies are making loss and are yet to make profit. Note: Fino Payments Bank shares are also down 31% from their IPO price of Rs 577. Fino Payments Bank had opened at Rs 545.25, a 4 per cent discount from its issue price of Rs 577 per share.
Paytm shares fell 18.57% to Rs 1,271 on Monday and ended the day down 12.9% at Rs 1359.60. The stock is now down more than 36% from its issue price of 2,150 per share. The company’s market cap stood at just Rs 88,184.67 crore as against the IPO valuation of around Rs 1.39 lakh crore. The sharp sell-off in investors’ assets has already wiped out Rs 51,194 crore.
MobiKwik may delay its IPO as it struggles to find foreign institutional backers at the right valuations amid growing doubts about the fintech business model. The company had in July filed its draft IPO document for the Rs 1,900-crore IPO, which was cleared by SEBI in October and the company was aiming to launch the offering before Diwali. According to the Economic Times, MobiKwik’s valuation has fallen 30-40% and it has been advised not to go ahead with its IPO as it may be difficult to get enough demand from institutional investors.
Analysts, who have expressed concern over the IPO valuation of loss-making Paytm, have cautioned that a “foty” valuation with an unclear business model may not end well in the current market. Note: Retail investors have already wiped out more than 35% of their value in just two trading sessions. While there may be further losses for the stock, its true price will be discovered after the 30-day lock-in period for anchor investors is over.
BharatPe founder Ashneer Grover is confident that there will be no fin-tech IPOs in the current market, while Ola and Oyo’s IPOs are also unlikely to make a great start. “I am very clear. This takes the wraps off the IPO market for this cycle. Investors are sitting in the US. Those who want to invest in the Indian market will ask how the market is right now. Then they will ask how the biggest The IPO has performed. That is down 40 per cent. It was also the biggest start-up with the highest valuation. People will say you missed out (get a discount on this). Many DRHPs will be liquidated now. Especially fin- In tech, I’m 100 percent sure,” Grover told CNBC-TV18.
“Paytm is continuing its journey south after getting listed on the back of liquidation by retail investors who were betting for listing gains. If we talk about the future outlook it is still uncertain as the market The timing of its core business and profitability is not clear. … Paytm comes out with a high valuation, where it was seeking a market cap of Rs 1.4 lakh crore against revenue of Rs 3,000 crore, while Bajaj Finserv, which Already listed fintech company, doing business with proven track record of sustained profits and growth. At a market cap of Rs 2.9 lakh crore against revenue of Rs 63000 crore, Paytm disrupted the payments industry post demonetisation. Delivered, but it got hampered by UPI. Paytm’s biggest strength is strong brand positioning as well as its huge customer base, though there is no clear low entry barrier gap with businesses… Apple to Apples for Paytm There is no comparison, but there are better-listed fintech companies that offer them with reasonable Available e-assessment with certainty of growth,” said Santosh Meena, Head of Research, Swastika Investmart.
Even before the commencement of trading, Macquarie Capital Securities had an “underperform” rating on Paytm and the price target was Rs 1,200, which was 44% lower than the IPO price. “Dubbing across multiple business lines precludes Paytm from being a category leader in any business except wallets, which are becoming irrelevant with the meteoric rise in UPI payments. Competition and regulation are the key to unit economics and/or growth in our medium term. Will reduce the chances. See,” the brokerage said.
Paytm’s Rs 18,300-crore IPO managed to garner just 1.89 times subscriptions, with mutual funds and wealthy investors largely staying away. The offer ended this offer, thanks to large investments from foreign funds such as BlackRock and Canada’s CPP.
“If you buy something at the wrong price, that bad decision haunts you for a very long time. My favorite example is Microsoft. It was a great company in 2000. If you bought it in 2000 for $60 dollars, that’s it.” You have to wait about 16 years just break even till 2016. In that context, if at 20 billion Paytm is saying I am 65% of Axis Bank, 40% of Kotak Bank, 30% of ICICI Bank and HDFC Bank 20%, so I really don’t believe it’s even remotely possible. Let’s look at some quick points here; they want to be this super app, but even after seven, eight years of existence, they There is hardly any break in the brokerage in the banking sector. I agree that payments bank is a limiting factor, but the average balance in a payments bank account is around Rs 500, do whatever you want with it. There is hardly any dent in me. I can buy dreams but there is only so much I can pay for,” said Anurag Singh, Managing Partner, Ansid Capital Told ET Now.
According to Richa Aggarwal, Editor and Research Analyst, Hidden Treasures, new markets like Zomato and Paytm aren’t really offering a unique value innovation to create. While they have really incorporated technology and value to users, they have not yet created any value for themselves in the process and are also dealing with great competition. is for zomato Swiggy, There is competition for Paytm from Google Pay, PhonePe, Razer Pay and others.
“The real differentiators create sustainable value and virtuous feedback loops. However, most startups, despite claiming to be disruptive, are growing on borrowed money, creating unstable and non-self-sustaining business models,” said Agarwal.
Therefore, investors will now be more cautious and risk averse especially for loss-making new age technology companies. As the IPO was going hot, these stocks are likely to suffer the most from the correction in the markets, which is why the shares of the recently listed Policybazaar and Zomato were down in the last four sessions. Note: Both these companies are making loss and are yet to make profit. Note: Fino Payments Bank shares are also down 31% from their IPO price of Rs 577. Fino Payments Bank had opened at Rs 545.25, a 4 per cent discount from its issue price of Rs 577 per share.
,