Why Foreign Investors Have Mostly Steered Clear Of Mega LIC IPO. Morgan Stanley, Goldman Sachs, Axis Capital, ICICI Securities, JPMorgan, Citi and HDFC Bank were bookrunnners on Paytm's IPO. Good News For India - Foreigners Last-Minute Dash For LIC IPO. More recently, shares in FSN E-Commerce Ventures (FSNE.NS), which owns cosmetics-to-fashion platform Nykaa, jumped 80% after its Nov. Digital payments giant Paytm, one of India’s most valuable startups, plans to raise up to 2.2 billion in an initial public offering, it said in draft papers submitted to the country’s market. The listing could bring "an end to obnoxious pricing in IPO markets", Mumbai-based investment adviser Sandip Sabharwal said.įood delivery firm Zomato surged 66% at its July debut after raising $1.2 billion. ![]() Ant reduced its to 23% from 28% and SoftBank's Vision Fund pared its holding by 2.5 percentage points to 16%. Singh also noted both Ant and SoftBank had cut their stakes in the IPO. He said that the stock was offered at 27 times enterprise value/gross profit for fiscal 2024, more than the 21.3 times for Zomato Ltd (ZOMT.NS). "Most of the domestic institutional investors appear to have skipped the IPO," added Aequitas Research director Sumeet Singh, who publishes on Smartkarma. Many market participants saw Paytm's slide as a sign that local investors had become disillusioned with heady valuations. Sharma said Paytm could turn profitable when it did not need to invest "so much more" to fuel growth opportunities.Īlthough Paytm's $2.5 billion IPO was priced at the top of the indicative range, demand was weaker than other recent start-up IPOs like Nykaa and Zomato, which were oversubscribed several times over. The company reported a loss of 3.82 billion rupees ($51.5 million) in the quarter ended in June, wider than a loss of 2.84 billion rupees for the same period last year. obviously the company lacks a clear path to profits," Shifara Samsudeen, a LightStream Research analyst who publishes on SmartKarma, said. "Paytm's financials are not very impressive and the growth prospects seem limited. The entry multiple for Paytm might appear steep, “however we see it as sustainable since it is the most impactful and real-economy internet business,” the note said.Investors and analysts on Thursday expressed concerns over valuing the loss-making firm at some $18.7 billion in the IPO. Its revenue rose more than 60%, boosted by strong growth in its financial, commerce and cloud services. Paytm reported its first financial results as a public company over the weekend, with losses widening to 4.74 billion rupees in the July-September quarter from a year earlier amid rising expenses. Paytm has the backing of top global investors, including Masayoshi Son’s SoftBank Group Corp., Warren Buffett’s Berkshire Hathaway Inc. One 97 Communications Ltd., Paytm’s parent company, raised $2.5 billion in its IPO but its debacle of a debut made it one of the worst initial showings by a major technology firm since the dot-com bubble era of the late 1990s. ![]() JM Financial has a sell rating on the stock, while Macquarie has rated it as underperform. ![]() ![]() Paytm dropped as much as 2.7% to 1,592 rupees on Thursday, a fifth day of declines, after plummeting 37% in the first two sessions of trading. The brokerage has set a target price of 2,500 rupees ($33.4), which is 16% higher than the company’s issue price. It positions the company as “one of the strongest digital brands to garner significant share of opportunities that will evolve in the Indian internet ecosystem,” they said. Paytm’s “super app” has emerged from a pure “want” category to reach to the “need” status, Dolat analysts, led by Rahul Jain, said. (Bloomberg) - Paytm, which has moved wildly since its listing after India’s largest initial public offering, has received the first buy rating from a brokerage that expects the company to turn profitable by March 2026.ĭolat Capital Market Pvt, the third brokerage to initiate coverage on the digital payments giant after Macquarie Capital Securities and JM Financial Institutional Securities Ltd., said its transition to a “manufacturer” of financial services from an agent, cross-selling of services, and strong growth in the number of users will help the company.
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