Paytm Payments Bank is set to launch Paytm Transit Card

Paytm Payments Bank Ltd on weekday proclaimed the launch of Paytm Transit Card, keeping in mind the vision of one nation, one card.

The card can take care of users’ everyday desires — from travel in railroad line, railways, state-owned bus services, toll & parking charges, to payments at offline merchandise stores, on-line shopping and much more. The card conjointly permits withdrawal of cash from ATMs.

“The launch of the transit card is aligned with the bank’s initiatives to bring out merchandise that create banking and transactions seamlessly operable for all Indians,” Paytm Payments Bank aforesaid in a very statement.

It has conjointly created a digital method to use, recharge, and track transactions of the cards on the Paytm App.

The card is going to be delivered at the doorstep of the user or will be purchased at selected stores. The postpaid card is directly joined to the Paytm billfold.

The Paytm Transit Card rollout is being launched together with Hyderabad railroad line Rail. Users in Hyderabad will currently purchase the transit card, which may be displayed at automatic fare assortment gates.

This service can facilitate around 50 lakh riders who use metro/bus/train services almost everyday and experience seamless travel.

The card is already live on the Delhi Airport Express line and Ahmedabad railroad line. With the Paytm Transit Card, individuals will use identical card in railroad lines still as alternative metro stations across the country, as per the release.

Satish Gupta, MD & corporate executive of Paytm Payments Bank, said, “The launch of the Paytm Transit Card can modify countless Indians with the facility of 1 single card that takes care of all transportation and also the banking desires. This can drive money inclusion and accessibility for all. We are glad to be a part of the NCMC initiative and can still work towards the digitisation of the transit scheme within the country whereas driving the adoption of good quality solutions.”

Paytm Transit Card is the bank’s second product within the mass transit category after the success of FASTags. Paytm Payments Bank is the initial bank within the country to attain the milestone of getting issued over one crore FASTags. Besides this, It’s conjointly India’s largest acquirer of toll plazas for the National Electronic Toll Collection (NETC) programme, giving a practical nationwide toll payment resolution.

The bank has enabled over 280 toll plazas across national & state highways to gather toll charges digitally, as per the release.

Paytm Shares Dip Down By 26 Percent, Founder Sharma Optimistic About Better Performance

paytm shares

Paytm shares plummeted as low as 26 percent in just a day after its stock listing. Paytm’s initial public offering (IPO) on the stock exchange markets was one of the crowning achievements in the company’s transformation from a startup to a prominent payments services platform in India. Paytm was listed on the Bombay Stock Exchange and the National Stock Exchange on November 18, 2021, after its most extensive initial public offering (IPO) in a decade.

While the Paytm group as a whole was enjoying the listing event, the paytm shares price was plummeting. Paytm’s stock price on the stock markets was Rs 1950, which was 9.3 percent lower than the company’s initial public offering (IPO) price of Rs 2150.The decline in the stock price continued on the second day as well, with the stock price plummeting to as low as 26 percent.

Because of Paytm’s slight and relative lack of success compared to other recent successful public offerings such as Nykaa, Zomato, and Policy Bazar, many stock market professionals were not surprised by the company’s lackluster performance on the BSE and the NSE. Nykaa’s initial public offering (IPO) grabbed headlines attributed to its outperformance, which resulted in its founder Falguni Nayar becoming a billionaire overnight.

Paytm’s dismal performance on the stock market, particularly when a large number of angel investors are putting their money into Indian companies, came as a surprise to many who purchased the paytm shares. A shaky start for Paytm, according to its founder Vijay Shekhar Sharma, has been a source of disappointment for him. He went on to say that it was just the first day and that he had high hopes for the future.

Also Read: All you need to know about the Paytm IPO that revealed today

Paytm’s first public offering (IPO) valued at Rs 18,300 crore was oversubscribed by just 1.95 times, much lower than the interest created by other public offerings such as Zomato and Nykaa. While it is true that Paytm’s first public offering (IPO) was far more significant in scale, several experts expressed concerns about the IPO’s price, profitability, and long-term prospects.

The following aspects are believed to be a cause of Paytm shares’ poor performance on the stock markets.

Poor IPO Subscription.

Paytm’s first public offering (IPO) got a much lower reaction than other recent IPOs that saw strong stock market debuts. The company’s initial public offering (IPO) had a lackluster response on the first two days and was only marginally oversubscribed on the final day.

However, unlike Zomato, Nykaa, and other smaller companies, the payments firm’s first public offering (IPO) did not get a favorable response from the public market. Consequently, Paytm’s underwhelming reaction to its first public offering (IPO) seems to be one of the causes contributing to the company’s lackluster stock market debut.

Over Priced Value Of Paytm Shares

The pricing range for Paytm’s first public offering (IPO) was determined at Rs 2,080-2,150 per share, with the business valued at $1.39 trillion at the higher end of the price range.

Various investment firms had voiced concern about the paytm shares price, claiming that it was costly in their opinion. The reason for their belief is tied to the financial situation of the organization. While the firm has been able to reduce its losses and diversify its primary business, it has not yet generated a profit.

Also Read: Paytm in talks to raise $1.1 billion from blue-chip global tech funds

Macquarie Research’s Critical Report

According to research published by the firm, Macquarie Research experts recently concluded that Paytm’s business strategy lacked concentration and direction. The target price for the stock was maintained at Rs 1,200 by the experts. Suresh Ganapathy and Param Subramanian of Macquarie Research wrote the research, which was published on Tuesday.

With the rapid growth of UPI payments, PayTM’s dabbling in various business lines prevents it from becoming a category leader in any area, except for wallets, which are becoming more insignificant. We believe that competition and regulation will push unit economics and growth prospects down in the medium term,” the brokerage said in the research.

Also Read: Paytm to become one of top 50 most valued listed companies

The CEO of Vijay Shekhar Sharma responded to the Macquarie Research analysts’ report by saying, “I would want to emphasize that our business strategy is solid and powerful.” It’s been an up and down day. I wish things might have gone better, but overall, it hasn’t been a very horrible day. It is a historic day for both India and us. I’d tell you to hang in there because I’m fighting for you with all my heart.

We hope that the outcomes of the next several quarters will instill much greater confidence and faith in everyone. At the same time, I want to express my gratitude for your trust and confidence in Paytm, which allows us to be there for you.’ Vijay Shekhar Sharma went on to say more.

Also Read: Paytm will not force employees to come to office: CEO

Paytm IPO: Rs.18,300-crore IPO, India’s biggest so far, gets fully subscribed

Paytm IPO

Paytm IPO, India’s largest such sale, Drew bids for 1.89 times the shares on offer, as institutional investors bid sharply on the third and final day of the share sale.

In the initial 2 days of Paytm IPO, investors looked as if it would show a lukewarm response to the share sale of One97 Communications Ltd, with the corporate that runs the Paytm payments service receiving bids for fewer than half of the shares on offer. Paytm, that started to raise that,300 large integer through its IPO, can doubtless build its stock market debut on eighteen Nov

Exchange knowledge showed that institutional consumers bid for 2.79 times the shares offered to them, whereas the retail book value around ₹1,830 crore, was signed 91.66 times at the top of the ultimate day. Overall, investors bid for ninety one.4 million shares for 48.3 million shares accessible.

“We area unit overwhelmed by the outstanding response to the Paytm commercialism shown by institutional investors, financial giants, mutual funds and after all, retail investors,” said a Paytm spokesperson.

According to a ten Nov report, Canadian pension fund CPPIB doubled down on its bet on the Noida-based company, with a bid of around ₹1,280 crore.

The fund had additionally taken half within the IPO’s anchor book allotment every day before the issue opened to broader investors.

Last week, Paytm raised ₹8,235 crore from anchor investors, with the anchor round subscribed ten times.

Of world wide web proceeds from the sale of new shares, ₹4,300 crore will be used for growing and strengthening the Paytm payments ecosystem, together with the acquisition and retention of consumers and merchants. ₹2,000 crore will be utilized for investing in new business initiatives, acquisitions, and strategic partnerships.

In addition, residual funds will be used for general company purpose.

Paytm is India’s largest digital ecosystem for consumers and merchants, with a gross merchandise worth (GMV) of ₹4 trillion in FY21.

GMV, or the whole worth of merchandise oversubscribed over a amount, measures the utilization of a site to sell merchandise owned by others.

As of thirty June, Paytm offered payment services, commerce and cloud services, and money services to 333 million customers and twenty two million registered merchants.

Paytm derives most of its revenue from dealings fees collected from merchants for payment services.

The company had negative money flows from operational activities for FY19, FY20 and FY21, primarily because of operational losses and on account of further capital necessities.

Paytm, that started as a bill payments and mobile recharge platform in 2010, bit by bit created a payments-led ‘super app’ and evolved into a comprehensive payments system, covering payments, credit, insurance, merchants, wealth management, e-commerce services, among others.

Also Read: Paytm Willing To Offer Cryptocurrency Trading, Waiting For The Clear Stand Of Govt.

                Paytm to become one of top 50 most valued listed companies

Paytm in talks to raise $1.1 billion from blue-chip global tech funds

Paytm has raised $1.104 billion in India’s largest-ever anchor spherical as a part of its initial public providing, that is additionally shaping up to be the nation’s largest, because the youngster of the Indian startup scheme moves nearer to listing within the public markets.

Blackrock, GIC, Canada retirement plan Investment Board, Birla medium frequency square measure among the investors UN agency supported the anchor spherical, Paytm aforementioned during a filing with a neighborhood exchange. Bidding for shares of Paytm was sold by ten times, per an individual acquainted with the matter.

With Wednesday’s investment, Paytm has currently secured nearly half the $2.45 billion capital it’s trying to lift from the commercialism. The startup, that offers a variety of monetary services, is seeking a valuation of over $19 billion within the commercialism, it aforementioned during a decision with reporters last week. Backed by Alibaba, Berkshire Anne Hathaway and SoftBank, Paytm was valued at $16 billion in its previous funding spherical within the half of 2019.

The investments of $140 million by Blackrock ANd $126 million by CPPIB are the most important by institutional investors in an Indian commercialism. United Arab Emirates’s capital Investment Authority, Dutch pension fund APG, town of latest royal house, American state academics Retirement, NPS Japan, University of American state, NTUC Pension out of Singapore, University of Cambridge, UBS, Mirae plus and normal Life Aberdeen additionally participated within the anchor spherical.

Paytm, which can open the bid for its shares for 3 days beginning Gregorian calendar month eight, has unbroken the share value vary between two,080 to 2,150 Indian rupees ($27.9 to $28.85). The startup is getting to list around Gregorian calendar month eighteen, antecedently rumored.

A eminent listing would change Paytm to realize the title of the largest commercialism in Bharat, surpassing a record $2.07 billion initial public providing by government-owned coal mining and refinement firm Coal Bharat eleven years past.

Paytm launched in 2009 to assist users simply create digital payments from their phones and high up credit. it’s since enlarged to a large vary of services like payment entryway, e-commerce marketplace, motion-picture show and travel price tag booking, additionally as insurance and digital gold.

The startup, diode by Vijay Shekhar Sharma, describes itself as having “created a payments-led super app, through that we provide our shoppers innovative and intuitive digital merchandise and services.” The startup says it’s collected over 330 million users across its services, over a 3rd of whom interact annually.

In a filing last week, Paytm disclosed that it clocked $118 million in revenue from its operations within the quarter that led to Gregorian calendar month this year, up sixty two from the previous quarter. In Q2, the startup’s losses surged to $50.9 million, Paytm said, citing further promoting and promotional campaigns within the run up to the commercialism.

Paytm’s commercialism comes at a time once the pandemic has fuelled India’s digital economy and native stock exchanges square measure showing growing appetency for shopper school stocks. Indian food delivery large Zomato created a stellar debut earlier this year. Shares of Nykaa, a fashion e-commerce startup, and Indian insurance someone PolicyBazaar, have additionally seen sturdy interest by institutional investors in recent days as each of them commit to list later this month.

In the filing last week, Paytm aforementioned that it plans to deploy over $250 million of the full capital it’s seeking to lift within the commercialism to enter new initiatives and explore acquisition opportunities. The startup’s offerings vie with a variety of services, together with Google Pay, WhatsApp Pay, PhonePe, MakeMyTrip and BookMyShow.