Paytm, formally called as One97 Communications Ltd., has launched its initial public offering ( Paytm IPO) for the subscription today, in what’s India’s biggest ever initial share sale since Coal India’s in 2010.
Anchor investors for the $2.46 billion (Rs 18,300 crore) IPO are Canada pension plan Investment Board, Sovereign wealth funds of Singapore & United Arab Emirates and the world’s largest asset manager BlackRock. The corporate has raised nearly half of the money from the anchor investors.
Investors participating in Paytm IPO
Large investors like Masayoshi Son’s SoftBank corporation, Jack Ma’s ant cluster, are selling the shares. Paytm is predicted to list in the mid of November. Here are few factors for investors to keep in mind while buying the IPO.
Payment Services: Paytm charges group action charges conjointly called merchant fees that is predicated on the proportion of GMV. It conjointly earns via client, convenience & subscription fees.
Financial Services: It charges a fee betting on the services the client avails. It charges a fee on promotion and distribution of credit cards, commission on the insurance policies, fee from the loaning business.
Commerce Services: It charges convenience fees from customers and earns group action fees from merchants on tickets for amusement, travel, and alternatives such services.
Cloud Services: Paytm charges a subscription fee which might be either fixed or variable supported volume on the platform.
“I believe Paytm will grow their value going forward after the IPO. We have high expectations not only on Paytm but also other businesses”, Masayoshi Son, CEO of SoftBank said, adding that the amount of IPOs from its portfolio has been increasing.
SoftBank, that owns 18.5% of Noida-based Paytm, can sell shares price worth of Rs.1,689 crore as a part of the Rs.10,000 crore offer for sale (OFS) in Paytm’s commercialism.