<ul><li>The company is likely to announce its share allotment status on October 6.</li><li>The mutual fund company’s IPO was subscribed 5.25 times on the last day of bidding.</li><li>Investors have bid for 14.59 crore shares against the 2.77 crore shares on offer.</li></ul>The mutual fund company Aditya Birla Sun Life AMC is likely to announce the allotment of its initial public offering (IPO) status on Wednesday, October 6. <br /><br />The IPO was open for subscription between September 29 and October 1. <br /><br />The mutual fund company is looking to raise ₹2,768 crore through sale of 3.88 crore shares. The IPO proceeds will go to promoters since the company is a joint venture between Aditya Birla Capital and Canadian firm Sun Life AMC. Both the promoters will jointly sell a 13.5% stake in the company through the IPO.<br /><br />Overall, investors have bid for 14.59 crore shares against the 2.77 crore shares on offer.<br /><br />The portion for qualified institutional investors was subscribed 10.36 times while the non-institutional investor category received a bid for 4.39 times.<br /><br />The IPO has received decent response from investors overall, however, qualified institutional buyers and non-institutional investors subscribed to it the most. <br /><br />A tepid response from investors and weak grey market premium indicates a weak listing for the company’s stock. The grey market premium slipped to ₹4 from ₹70 in the last week. <br /><br />However, analysts expect the mutual industry’s AUM to grow by 11-13% in the next five years at ₹57 trillion and Aditya Birla Sun Life AMC to benefit from strong industry prospects given it is among the top five players.<br /><br />The ₹36 trillion mutual fund industry in India, with 44 players may see consolidation happening in the next couple of years considering the majority of the market is held by the country’s top 10 fund houses, said the company in an interview to Business Insider.<br /><br />As of June quarter 2021, the top 10 mutual fund companies held 82% of the market share, as per Association of Mutual Funds in India (AMFI) data.<br /><br />The fourth largest mutual fund (MF) company Aditya Birla Sun Life AMC, which opened its IPO on September 29, alone holds over 8% market share.<br /><br />SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/sebi-approves-fino-payments-banks-1300-crore-ipo-paytm-next-in-line/articleshow/86755408.cms">SEBI approves Fino Payments Bank’s ₹1,300 crore IPO, Paytm next in line</a><br /><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/thanks-to-remdesivir-kwality-pharmas-stock-is-up-from-59-to-over-922-in-just-over-nine-months/articleshow/86750890.cms">Thanks to Remdesivir, Kwality Pharma’s stock is up from ₹59 to over ₹922 in just over nine months</a>

Aditya Birla Sun Life AMC IPO allotment starts tomorrow, IPO was subscribed 5.25 times

Nykaa, Policybazaar, Paytm among nine companies whose IPO lock-in period ends in November

A year after market debut, Paytm is the worst performer among recent large IPOs – Cartrade, Policybazaar and LIC join the party

<ul><li>Retail investors fully subscribed to the IPO within an hour of the issue opening.</li><li><keyword id="6376684" type="General" weightage="20" keywordseo="nykaa" source="Orion">Nykaa</keyword>’s IPO will go on until November 1 and it will list on the market ten days later.</li><li>The shares are available at a price band of ₹1,085 to ₹1,125 the lot size is 12 shares.</li></ul>Fashion and beauty ecommerce platform Nykaa’s initial public offering (IPO) received a strong demand on October 28 and was subscribed 1.56 times on the first day of the issue.<br /><br />The company received high demand from retail investors, who had fully subscribed to the IPO within an hour of the issue opening. The retail investors subscribed to Nykaa’s IPO 3.51 times, according to the stock exchange. <br /><br />This was the highest among the three groups of investors — qualified institutional buyers (QIB), non-institutional investors and retail investors (also known as “individuals”). <br /><br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Category <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscription <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Institutional<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.40 times<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Non Institutional <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.60 times<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Retail<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.51 times<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Employees<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.68 times<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.56 times<br /><br /></td></tr></tbody></table>Source: BSE<br /><br />Nykaa’s IPO will go on until November 1 and the company will list on the stock exchange on November 11. It aims to raise ₹5,352 crore with this public issue. Nearly ₹630 crore will be raised through fresh issue of shares.<br /><br />The shares are available at a price band of ₹1,085 to ₹1,125 the lot size is 12 shares. <br /><br />The company raised<a href="https://www.businessinsider.in/stock-market/news/nykaa-raises-2400-crore-from-174-anchor-investors/articleshow/87325004.cms"> ₹2,395.8 crore</a> from 174 anchor investors on October 27. This also included the Government of Singapore, Goldman Sachs, JP Morgan, T Rowe Price, OP-India Fund.<br /><br /><strong>SEE ALSO</strong><br /><a href="https://www.businessinsider.in/business/startups/news/paytm-ipo-will-help-alibaba-make-730-million-and-vijay-shekhar-earn-53-million/articleshow/87329594.cms" style="">Alibaba will make $730 million from Paytm IPO, Vijay Shekhar will earn $54 million</a><br /><br /><a href="https://www.businessinsider.in/stock-market/news/adani-ports-share-price-tumbles-due-to-poor-results-myanmar-exit/articleshow/87328012.cms" style="">Adani Ports has lost nearly a third of its profit and its Myanmar project</a><br /><br /><a href="https://www.businessinsider.in/stock-market/news/fino-payment-ipo-how-to-apply-for-this-ipo-via-banks-and-trading-apps/articleshow/87330392.cms" style="">Fino Payments Bank’s public issue opens tomorrow and here’s how you can easily apply for the IPO</a><br />

Nykaa IPO subscribed 1.56 times on first day, today is the second day to subscribe

<ul><li>Shares of <keyword id="42747" type="General" weightage="20" keywordseo="tata-motors" source="Orion">Tata Motors</keyword> gained on Tuesday even as the automaker’s losses widened in the September quarter.</li><li>Investors took note of the company's bullish comments that demand remains strong for JLR and India passenger vehicles.</li><li>Tata Motors reported a 14-fold widening of its loss to ₹4,416 crore in the September quarter as semiconductor shortage and inflation continue to impact its business.</li></ul>Even though Tata Motors reported a 14-fold widening in its net loss, which rose to ₹4,416 crore in the September quarter, investors took note of the company’s bullish comments on strong consumer demand. <br /><br />While announcing its earnings, the company said that demand remains strong for Jaguar Land Rover (JLR) and India passenger vehicle business while commercial vehicle demand improves gradually. <br /><br />However, semiconductor issues and commodity inflation continue to impact Tata Motors near term performance. “The performance is expected to improve gradually starting in H2 [second half of FY22] as both the supply chain and the pandemic situation improves,” said Tata Motors.<br /><br />Shares of Tata Motors rose as much as 3% in early trade on November 2 taking note of strong demand. <br />  <div type="image" title="tata motors share chart" height="900" width="1200" msid="87480006" hostid="261"></div><br />Moreover, analysts also remained optimistic on the company’s performance as they see volume recovery soon. <br /><br />Analysts at Jefferies <a href="https://twitter.com/CNBCTV18Live/status/1455352247911534592">reportedly </a>said that demand recovery, market share gains and better margin will continue to help Tata Motors’ India business. It maintained a ‘buy’ rating on the stock. <br /><br />Another positive part for the loss maker was its revenue grew 15% year-on-year to ₹61,378 crore in July-September period. Tata Motors’ electric vehicle business posted nearly three-fold growth with highest monthly and quarterly sales of 1,078 units and 2,704 units, respectively. <br /><br />SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/retail/news/a-third-of-indias-festive-seasons-is-over-whats-selling-and-whats-not/slidelist/87468577.cms">A third of India’s festive seasons is over ⁠— what’s selling and what’s not</a><br /><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/last-day-to-subscribe-to-fino-payments-bank-ipo/articleshow/87474206.cms">Today is the last day to subscribe to Fino Payments Bank IPO</a><br /><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/tata-motors-bharti-airtel-hero-motocorp-and-other-top-stocks-in-news-on-november-2/slidelist/87477082.cms">Tata Motors, Bharti Airtel, Hero MotoCorp and other top stocks in news on November 2</a>

What Tata Motors investors are excited about — obviously not the huge loss

IPOs in FY23 have been fewer but many have fared better than the previous year

<ul><li><keyword id="2947589" type="General" weightage="20" keywordseo="droom" source="Orion">Droom</keyword> plans to raise ₹2,000 crore in fresh issue and the remaining ₹1,000 crore would be raised as an offer for sale.</li><li>It will use the capital to fund its organic as well as inorganic growth initiatives.</li><li>Droom was launched in 2014 by <keyword id="195858" type="General" weightage="20" keywordseo="sandeep-aggarwal" source="Orion">Sandeep Aggarwal</keyword>, who previously founded India’s fourth unicorn ShopClues.</li></ul>Online automobile marketplace Droom has filed its draft red herring prospectus (DRHP) for its ₹3,000 crore initial public offering (IPO). The Gurugram-based startup — which was valued at $1.2 billion three months ago — is backed by Toyota Tsusho, Digital Garage, Lightbox, Ellison Investments, SevenTrainVentures and others. <br /><br />Droom plans to raise ₹ 2,000 crore in fresh issue and the remaining ₹1,000 crore would be raised as an offer for sale. The seven-year-old startup has not yet revealed which investors will be selling their shareholdings in the upcoming IPO. <br />  <div type="image" title="Droom files for ₹3,000 crore IPO ⁠— the online car dealer wants ₹400 crore for acquisitions" msid="87664955" hostid="261"></div><br />Droom is the second automobile marketplace to hit the public market. Meanwhile, Cars24 — the highest valued player in the domain — has converted itself into a public limited company, a step taken by companies before going public.<br /><br />Droom ⁠— launched in 2014 by Sandeep Aggarwal, who previously founded India’s fourth unicorn ShopClues ⁠— has raised $333 million to date, as per business intelligence platform <a href="https://www.crunchbase.com/organization/droom/company_financials">Crunchbase</a>. A unicorn, in startup purlance, is a company valued over a billion dollars.<br /><br />CarTrade got listed on August 20 and it’s shares have fallen 17% since last one month<br /><br />Droom will use the proceeds from the IPO for its organic as well as inorganic growth initiatives, which usually includes acquisitions and investments in other businesses. <br /><br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Usage<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amount<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Funding organic growth initiatives<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,150 crore <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Funding inorganic growth initiatives<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹400 crore <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">General corporate purpose <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">N/A<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><br />The company in<a href="https://www.businessinsider.in/business/startups/news/droom-founder-explains-why-he-is-considering-a-us-ipo-and-where-he-intends-to-spend-the-money/articleshow/84917608.cms"> July 2021 highlighted</a> that it is exploring listing opportunities in both India and the US, even though it does not have any business in the United States.<br /><br />The success of the IPOs from Zomato, Nykaa and EaseMyTrip may have pushed Droom to go for the IPO in India itself, even though raising money in dollars would have left more funds, in rupee terms, to be spent in India. <br /><br />“I never thought, and I was a Wall Street analyst, that new age companies with no near-term visibility to profitability can be listed on BSE and NSE [National Stock Exchange], and can create a decent enough valuation,” Agarwal told Business Insider in an interview in July 2021. <br /><br /><strong>WATCH MORE: </strong>India's Latest Unicorn Is Prepping For An IPO Now<br />                                <div type="Video" msid="84897976" hostid="261" title="India's latest unicorn is prepping for an IPO now" dataSource="BUSINESSINSIDER" thumbUrl="https://denmark.timesinternet.in/cmslite/api/app/images.jpg?msid=84897976"></div><br />He further added that the stock appetite among the Indian investors has changed over the last couple of years and this is why they are open to listing in India now.<br /><br /><strong>SEE ALSO: <br /></strong><a href="https://www.businessinsider.in/business/corporates/news/the-mystery-behind-the-fall-in-tata-steels-shares-despite-a-seven-fold-rise-in-profit/articleshow/87663158.cms">The mystery behind the fall in Tata Steel’s shares despite a seven-fold rise in profit</a><br /><br /><a href="https://www.businessinsider.in/business/startups/news/purplle-is-planning-to-set-up-its-own-network-of-retail-stores-as-nykaa/articleshow/87649025.cms">Half a billion dollar worth Purplle is now taking the next step to take on Nykaa</a><br /><br /><a href="https://www.businessinsider.in/stock-market/news/fino-payments-bank-starts-trading-at-548-a-premium-of-5/articleshow/87659329.cms">Fino Payments Bank lists 5% below IPO price</a><br />

Droom files for ₹3,000 crore IPO ⁠— the online car dealer wants ₹400 crore for acquisitions

<ul><li><keyword id="6357120" type="General" weightage="20" keywordseo="paytm" source="Orion">Paytm</keyword>’s IPO will open for subscription on Monday, seeking a valuation of $19.3-19.9 billion.</li><li>The price band has been set at ₹2,080-₹2,150 per share, with a lot size of 6 shares.</li><li>Marwadi Financial Services believes that the valuation is too demanding for a loss making company.</li><li>Angel One notes that Paytm is well positioned to gain from growth of digital payments and its valuation is justified.</li></ul>One 97 Communications — the parent company of digital payments giant Paytm — will launch its ₹18,300 crore ($2.4 billion) initial public offering (IPO) on Monday, at a price band of ₹2,080-₹2,150 per share. <br /><br />The lot size has been set at six shares, which means that a lot would cost ₹12,900 at the upper price band. The IPO will close for subscription on Wednesday, November 10, and the allotment will be announced on November 15. <br /><br />The listing date has been set at November 18. <br /><br />Paytm is seeking a valuation of $19.3-$19.9 billion with this IPO, which has not gone down well with several stock brokerages and this has reflected in their recommendations for this IPO as well. While AngelOne has given a blanket subscribe call for this billion dollar IPO, KR Choksey and Arihant Capital Markets have noted that the IPO can be subscribed for listing gains.<br /><br /><table class="redcator-table-advance" style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Stock Brokerages<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Recommendations <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">KR Choksey<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe for listing gains “only”<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">AngelOne<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Marwadi Financial Services<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Avoid<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Arihant Capital Markets<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe for listing gains<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">AnandRathi</td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe Long Terms</td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Reliance Securities</td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe</td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Canara Bank Securities</td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe for long term</td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><br />Earlier, Valuation guru Aswath Damodaran, a professor at New York University’s Stern School of Business — who valued <keyword id="181441" type="General" weightage="20" keywordseo="one97-communications" source="Orion">One97 Communications</keyword> at $20 billion in October 2021 — had noted that Paytm cannot be a passive buy and hold investment but would require more “active engagement and monitoring” of the company’s actions and performance. <br /><br />“...This is the type of stock that you would put 5%, or perhaps 10% of your portfolio in, not 25% or 40%,” he said in a<a href="https://aswathdamodaran.blogspot.com/"> blog post</a>.<br /><br /><strong>Watch More: </strong>Here's what analysts have to say about India's biggest IPO by Paytm<br />                <div type="Video" msid="87591265" hostid="261" title="Here’s what analysts have to say about India’s biggest IPO by Paytm" dataSource="BUSINESSINSIDER" thumbUrl="https://denmark.timesinternet.in/cmslite/api/app/images.jpg?msid=87591265"></div><br /><strong>The valuation seems too demanding for some<br /></strong><br />Marwadi Financial Services has noted that Paytm is at a great risk if the company fails to retain its customers, attract new customers, increase the volume of transactions from consumers and fail to maintain or improve its technology infrastructure.<br /><br />These risks — which were also mentioned in Paytm’s red herring prospectus (RHP) — have the potential to harm the company’s business, revenue, profitability and growth. <br /><br />Meanwhile, a KRChoskey report highlighted that there are two challenges ahead of Paytm's profitability — achieving a steady ‘take rate’ and keeping the customer and marketing costs low.<br /><br />A take rate is the fee charged by a marketplace on a transaction performed by a third-party seller or service provider.<br /><br />"In the last 5 years the company has focused on acquiring customers and increasing transactions both in value and volume terms. As a result, [the] take rate dropped from 2.18% in FY2017 to 0.79% in FY2021. Globally, if we look at the take rate, which more established payment services providers are able to achieve is in the region of 1.2% to 1.8%," the KRChoksey report added.<br /><br />Marwadi Financial Services have recommended investors to “avoid” Paytm’s IPO as the valuation is too demanding for a loss-making company.<br /><br />Jyoti Roy, deputy vice president of equity strategist at Angel One, has a different way of looking at it. He noted that the valuation does appear to be expensive, but Paytm brand has become synonymous with digital payments and is the market leader in the mobile payment space.<br /><br />“Paytm is well positioned to benefit from the exponential 5x [times] growth in mobile payments between FY2021 – FY2026 and hence believe that the valuations are justified,” he noted, adding that Paytm is valued at 49.7 times its FY21 revenues at the upper end of the price band.<br /><br />                                    <div type="image" title="Looking to subscribe to Paytm’s IPO? Brokerage firms are not fully convinced" msid="87578251" hostid="261"></div><br /><strong>Revenue not an issue, but profitability is<br /></strong><br />KRChoksey believes that Paytm will have to be on a high growth trajectory in revenue terms for a period of three years in order to sustain its current valuation. All of its three verticals — payments, financial services as well as cloud and commerce — will have to keep firing at an accelerated pace. <br /><br />“Looking at the past track record, we are reasonably confident that management will leave no stone unturned to achieve this. What remains to be seen is how this growth can be achieved without burning too much of cash,” the brokerage added.<br /><br />Arihant Capital Markets, on the other hand, noted that Paytm’s history of loss and negative cash flows in prior years have raised questions about its ability to turn profitable.<br /><br />A report by Reliance Securities added, "Paytm’s financial performance has not been encouraging over the years, with the company continuing to record an EBITDA loss and net loss. However, it has been witnessing an improvement in financial performance, with a continued fall in operating losses and net loss, mainly led by the contraction in marketing &amp; promotional expenses."<br /><br /><strong>WATCH ALSO:</strong> ‘Have seen an IPO season like no other’, Radhika Gupta and Nalin Moniz on flurry of IPOs this season<br />                                            <div type="Video" msid="87579539" hostid="261" title="‘Have seen an IPO season like no other’, Radhika Gupta and Nalin Moniz on flurry of IPOs this season" dataSource="BUSINESSINSIDER" thumbUrl="https://denmark.timesinternet.in/cmslite/api/app/images.jpg?msid=87579539"></div><br /><br /><strong>SEE ALSO</strong><br /><a href="https://www.businessinsider.in/business/startups/news/how-to-subscribe-to-paytm-ipo-on-zerodha-paytm-money-banks/articleshow/87510232.cms" data-type="tilCustomLink">Paytm IPO will open today — here is how to apply via bank and apps like Zerodha, Paytm Money</a><br /><a href="https://www.businessinsider.in/stock-market/news/fino-payments-bank-ipo-allotment-is-tomorrow-november-9/articleshow/87577397.cms" data-type="tilCustomLink">Fino Payments Bank IPO allotment tomorrow, investors had oversubscribed by over 2 times</a><br /><a href="https://www.businessinsider.in/tech/news/why-netflix-games-on-ios-could-be-slightly-different-than-android/articleshow/87577781.cms" data-type="tilCustomLink">Netflix games on iOS could be slightly different than Android, here’s why</a><br />

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