Analysis, guides and explainers on India's unlisted market — from IPO pipelines to ESOP liquidity.
<span style="font-size: 12pt;"><span style="font-weight: 400;">Reliance Retail, the largest retailer in India and a subsidiary of Reliance Industries demonstrated a stellar performance amidst the so-called consumption slowdown, and GDP growth rate declining to the lowest levels since the past decade. </span><span style="font-weight: 400;"> </span></span> <span style="font-size: 12pt;"><span style="font-weight: 400;">The Reliance Industries Mcap reaching no. 1 in India is due to stellar performances by the Retail and JIO segment.</span><span style="font-weight: 400;"> </span><span style="font-weight: 400;"> </span><span style="font-weight: 400;">The total store count of Reliance Retail now equals 11,000. With 337 stores added this quarter, Reliance Retail has been adding nearly a store every day for the past few years!</span><span style="font-weight: 400;"> </span><span style="font-weight: 400;"> </span><strong>Financials of Q2FY20</strong><b> </b></span> <span style="font-weight: 400; font-size: 12pt;"><strong>(i)</strong> Revenue increased 27% y-o-y to INR 41,202 crores. </span> <span style="font-weight: 400; font-size: 12pt;"><strong>(ii)</strong> EBDIT increased by 66.8% to nearly INR 2,322 crores. </span> <span style="font-weight: 400; font-size: 12pt;"><strong>(iii)</strong> Net Profit increased 55% to INR 1,148 crores.</span> <span style="font-weight: 400; font-size: 12pt;"><strong>(iv)</strong> Cash Profit (adding back Depreciation and Amortization to Net Profit) increased by a whopping 70% to INR 2,341 crore</span> <span style="font-weight: 400; font-size: 12pt;"><strong>(v)</strong> EBIT Margin has increased to 4.9%.</span> <span style="font-size: 12pt;"><strong>UnlistedZone View</strong></span> <span style="font-weight: 400; font-size: 12pt;">The way Reliance Retail is performing, the annualized revenue for FY20 will easily cross 1.50 lakh cr. So if we give Mcap/Revenue of 2.5x to Reliance Retail and with outstanding shares of ~498 cr, the share price can easily go up to 750 per share.</span>
<p>HDB Financial Services, a prominent player in the financial sector, recently published its half-yearly results, offering a comprehensive look into the company's financial health. This detailed analysis focuses on the performance of HDB Financial's unlisted shares, leveraging the latest data to provide investors and stakeholders with valuable insights.</p> <p>For the half-year ended on September 30, 2019, HDB Financial Services reported a total income of ₹5,250 Crores, a significant increase from ₹4,078 Crores in the corresponding period in 2018, and almost 60% of the full year's income of ₹8,724 Crores in the year ended March 31, 2019. This growth in income highlights the company's robust revenue-generating capabilities and its strong market position.</p> <p>However, the company's expenses also saw a parallel increase, rising from ₹3,266 Crores in the half-year ended September 30, 2018, to ₹4,495 Crores in 2019. This accounts for approximately 64% of the full year's expenses of ₹7,000 Crores in FY 2018-19, indicating a consistent upward trend in operational and other costs.</p> <p>In terms of profitability, the Net Profit for the half-year ended September 30, 2019, stood at ₹427 Crores, a decrease from ₹525 Crores in the same period last year. This represents a decline of approximately 18.6%, suggesting challenges in maintaining profitability amid increasing expenses. Despite this, the company's earnings per share (EPS) stood at ₹5.44, compared to ₹6.71 in the same period the previous year, and ₹14.64 for the full year ended March 31, 2019. This EPS reflects the company's ability to generate earnings for its shareholders.</p> <p>The equity position of HDB Financial Services remained stable, with equity at ₹785 Crores as of September 30, 2019, marginally higher than the ₹782 Crores in 2018, maintaining a consistent level with the year ended March 31, 2019.</p> <p>This analysis of HDB Financial Services' unlisted shares provides a clear picture of the company's financial trajectory. While the growth in total income is promising, the decrease in net profit and EPS underscores the need for efficient cost management and strategic initiatives to bolster profitability. Investors and market analysts closely watching HDB Financial Services will find these insights crucial in assessing the company's performance and future prospects in the dynamic financial landscape.</p> <!--more--> <table width="429"> <tbody> <tr> <td style="text-align: center;" width="124"><strong>Particulars(cr)</strong></td> <td style="text-align: center;" width="122"><strong>Half-Year ended</strong> <strong>30-09-2019</strong></td> <td style="text-align: center;" width="103"><strong>Half-year ended</strong> <strong>30-09-2018</strong></td> <td style="text-align: center;" width="80"><strong>Year Ended</strong> <strong>31.03.2019</strong></td> </tr> <tr> <td style="text-align: center;">Total Income</td> <td style="text-align: center;">5250</td> <td style="text-align: center;">4078</td> <td style="text-align: center;">8724</td> </tr> <tr> <td style="text-align: center;">Expense</td> <td style="text-align: center;">4495</td> <td style="text-align: center;">3266</td> <td style="text-align: center;">7000</td> </tr> <tr> <td style="text-align: center;">Net-Profit</td> <td style="text-align: center;">427</td> <td style="text-align: center;">525</td> <td style="text-align: center;">1149</td> </tr> <tr> <td style="text-align: center;">Equity</td> <td style="text-align: center;">785</td> <td style="text-align: center;">782</td> <td style="text-align: center;">785</td> </tr> <tr> <td style="text-align: center;">EPS</td> <td style="text-align: center;">5.44</td> <td style="text-align: center;">6.71</td> <td style="text-align: center;">14.64</td> </tr> </tbody> </table> <p>To get more details <span style="text-decoration: underline;"><strong><a href="https://unlistedzone.com/storage/knowledge-logo/IMG-20191016-WA0002.jpg">Click here</a></strong></span></p> <p> </p>
The bank has given notice for the Extra Ordinary General (EGM) meeting to the members of Suryoday Small Finance Bank Limited (“ the Bank”) which is to be held on Tuesday, November 5, 2019, at the registered office Navi Mumbai 400614 at 11.30 a.m. to transact the following business: <strong>(i)</strong> Increase in the limits of investment by NRIs to 24% of the paid-up share capital of the Bank. <strong>(ii)</strong> Alteration of Clause 3(xx) of Part A and Clause 1(lix) of Part B of the Articles of Association of the Bank. The clause (ii) is of less importance as far as retail investors are concerned. It is related to changing shareholding from one of the promoters to family members. <em>"One of the Promoters has indicated his desire to transfer his shareholdings to his family members who will continue to hold the shares subject to the conditions imposed by the RBI on shares held by the Promoter. While the necessary applications have been submitted to the Reserve Bank of India for its consideration, it is proposed to alter the definition of ‘Promoters’ to allow the concerned transferees to hold shares as Promoters of the Company in case the RBI permits them to do so"</em> <strong>The clause (i)</strong> is important for us as it indicates that NRIs are interested in purchasing shares of the bank. As per the shareholding pattern of the Bank as on September 30, 2019, foreign shareholding in the Bank is <strong>43.89%</strong> and the aggregate NRI holdings (on the non-repatriation basis) in the Bank’s paid-up capital is <strong>16.67%.</strong> As per FEMA, a private sector banking company is permitted to have Foreign Direct Investment up to 49% of its paid-up share capital under the Automatic route and up to 74% with Government approval. Further, in the case of NRI holdings, whether on repatriable or on a non-repatriable basis, the individual holdings are restricted to 5% of the total paid-up share capital of the Bank and the aggregate limit restricted to 10% of the total paid-up share capital of the Bank. As a research team, we would be like to see at what valuation the bank will issue shares to NRI. Thanks for reading!! We will update once the EGM's outcome or any funds raising news comes.
A recent circular by SEBI which is released on Oct-1 has restricted debt Mutual funds to invest in the unlisted commercial paper issued by companies. <strong><span style="text-decoration: underline;"><a href="https://www.livemint.com/mutual-fund/mf-news/big-bang-reform-sebi-puts-an-end-to-investment-in-unlisted-commercial-paper-11570011890801.html">The information was published recently in the live mint.</a></span></strong> Commercial papers(CPs) are the debt instruments through which companies raise funds for the short term typically less than a year. Generally, companies raise money via CPs as they carry fewer coupon rates and result into more spread. Now with this guideline in place, the companies which are issuing CPs have to list them compulsory on NSE or BSE. This means additional financial disclosure for the companies. However, the existing CPs are grandfathered until their maturity. This has been done due to a recent crisis that happened in the debt market after ILF&S fiasco and the fall of DHFL due to the overexposure of these companies to these commercial papers.
The UTI AMC is planning for IPO in the next 6 months and started the preparation of appointing investment bankers. UTI AMC was incorporated on November 14, 2002, and commenced operations from February 1, 2003. UTI AMC is today a household name in India and has a wide portfolio to suit the varied needs of investors supported by industry-led best practices, long-term vision, and shareholder values. With <strong>150 branches</strong>, <strong>47,000 highly trained IFAs</strong>, 320 Chief Agents and Business Development Associates and over 1 crore investor accounts, UTI AMC is one of the leading financial institutions with a pan Indian presence. As of 30.07.2019, the company is currently having an <strong>AUM</strong> of <strong>159764 Crore.</strong> Two mutual funds i.e. HDFC AMC and Nippon India Mutual Fund( erstwhile RNAM) are already listed on the bourses. As per Economic Times, the UTI AMC may get a valuation of Rs. 12000-13000 cr and they are looking to raise Rs. 2500-3000 cr from IPO. Let us see how this valuation is faired up with listed AMCs. <table style="width: 66.2029%;"> <tbody> <tr style="font-weight: inherit;"> <td style="text-align: center; width: 8.74466%;" width="79"><strong>Company</strong></td> <td style="text-align: center; width: 16.9061%;" width="64"><strong>Price</strong></td> <td style="text-align: center; width: 10.009%;" width="93"><strong>Mcap(cr)</strong></td> <td style="text-align: center; width: 15.2022%;" width="91"><strong>AUM(cr)</strong></td> <td style="text-align: center; width: 2.61097%;" width="100"><strong>Mcap/AUM</strong></td> </tr> <tr style="font-weight: inherit;"> <td style="text-align: center; width: 8.74466%;" width="79">Nippon</td> <td style="text-align: center; width: 16.9061%;" width="64">282</td> <td style="text-align: center; width: 10.009%;" width="93">17,314</td> <td style="text-align: center; width: 15.2022%;" width="91">2,09,484</td> <td style="text-align: center; width: 2.61097%;" width="100">8%</td> </tr> <tr style="font-weight: inherit;"> <td style="text-align: center; width: 8.74466%;" width="79">HDFC</td> <td style="text-align: center; width: 16.9061%;" width="64">2610</td> <td style="text-align: center; width: 10.009%;" width="93">55,509</td> <td style="text-align: center; width: 15.2022%;" width="91">3,75,560</td> <td style="text-align: center; width: 2.61097%;" width="100">15%</td> </tr> <tr> <td style="text-align: center; width: 8.74466%;" width="79">UTI</td> <td style="text-align: center; width: 16.9061%;" width="64">750-800</td> <td style="text-align: center; width: 10.009%;" width="93">9500-10143</td> <td style="text-align: center; width: 15.2022%;" width="91">1,59,764</td> <td style="text-align: center; width: 2.61097%;" width="100">6-6.35%</td> </tr> </tbody> </table> The UTI AMC is currently available at Rs.750-800 range in the unlisted market, which translates into the valuation of Rs. 9500 to 10143 cr. At Mcap/AUM multiple of 6%, the UTI AMC is the cheapest AMC among all.
The <strong>Ministry of Electronics and Information Technology (MeitY) </strong>has ranked <strong>HDFC Bank, FINO Payments Bank and Paytm Payments Bank (PPB) </strong>as the top three banks in the month of July, based on their performance to drive <strong>digital payment transactions</strong>. " <em>The scores are based on the performance of the banks against targets assigned to them which includes – total digital transactions achieved, merchant deployment, active merchants, as well as, successful UPI and AePS transactions.</em> <em> Based on the digital transactions achieved, HDFC Bank achieved 110 percent of the target assigned to it, with an overall score of 71. While FINO Payments Bank scored 70 by achieving 196 percent of its target, PPB was given a score of 69 and achieved 102 percent of the target</em>" For more detail click<span style="font-size: 18pt;"><strong><a href="https://yourstory.com/2019/10/meity-hdfc-bank-fino-paytm-payments-bank-digital-payment-transactions"><span style="text-decoration: underline;"> link </span></a></strong></span> <span style="font-size: 12pt;">Source: You Story</span>
<span style="font-size: 12pt;">It is a matter of pride for us that your UnlistedZone has been featured once again in the Economic Times.</span> <span style="font-size: 12pt;">We want to tell you that our main goal to form UnlistedZone is to bring good quality unlisted shares to the public with full research reports so that our investors can invest their money carefully and not on the advice of others. We have also added the comments section on our website so that investors can ask any queries in case they have one. </span> <span style="font-size: 12pt;">Now we are sharing the link of Economic Times, in which we have shared our thoughts about Bira share.</span> <span style="text-decoration: underline; font-size: 12pt;"><a href="https://economictimes.indiatimes.com/markets/stocks/news/liquor-stocks-in-low-spirits-but-this-unlisted-player-is-on-a-high/articleshow/71272338.cms">Click here to read</a></span>
<span style="font-size: 14pt;"><strong>Will seriously explore possibility; have to discuss the issue with investors’</strong></span> Fino Payments Bank, which started operations about two years ago, is likely to apply to the Reserve Bank of India (RBI) to convert itself into a small finance bank after the banking regulator allowed such conversion last week. While announcing the draft norms for on-tap licensing for small finance banks on September 13, RBI allowed the conversion of a payments bank to a small finance bank. <span style="font-size: 14pt;"><strong>Eligible for conversion</strong></span> The payments bank will be eligible for conversion as it is not backed by any industry house. RBI has barred corporate groups, which earn more than 40% income from non-financial activities, from applying for SFB license. In an interaction with The Hindu, Rishi Gupta, MD, and CEO of Fino Payments Bank said, “We will seriously explore the possibility<strong> [of converting into SFB].</strong> We are studying the norms. We have to discuss the issue with the investors.” For more detail click <span style="text-decoration: underline; font-size: 18pt;"><strong><a href="https://www.thehindu.com/business/Industry/fino-payments-bank-likely-to-apply-for-small-finance-bank-licence-says-md/article29478207.ece">link</a></strong></span> <strong>Source: The Hindu.</strong>
<span style="font-size: 12pt;"><strong>The Indian Premier League’s valuation grew nearly 7 percent in 2019 to $6.8 billion, boosted by an increase in brand values of two of its most popular franchises, according to a study. Brand values of Mumbai Indians and Chennai Super Kings rose by 8.5 percent and 13.1 percent, respectively, the study by Duff & Phelps said, adding it was on the back of the teams’ consistency in on-field performance.</strong></span> <span style="font-size: 12pt;">Read more at<strong> </strong><span style="text-decoration: underline;"><strong><a href="https://www.bloombergquint.com/business/indian-premier-leagues-brand-valued-at-68-billion-in-2019">Link</a></strong></span></span>
<span style="font-size: 12pt;"><strong>(i)</strong> The RBI yesterday have formed draft guidelines for <strong>Small Finance Bank(SFB).</strong></span> <span style="font-size: 12pt;"><strong>(ii) </strong>The Payment bank can now apply license for <strong>SFB</strong> if it has a <strong>Net-Worth of 200 Cr.</strong></span> <span style="font-size: 12pt;">" <em>This is good news for Fino-Payment Bank as they can now apply for SFB license. This will give them a lot of opportunities to work with which is lacking in the payment bank. For example, <strong>Payment Bank can't lend</strong>, and <strong>they can't have deposit more than 1 lakh</strong>. With SFBs license such limitation won't apply </em>".</span> <span style="font-size: 12pt;"><strong>(iii) </strong> Once they get license, Promoters' stake in SFBs should be brought down to 15% in 15 years.</span> <span style="font-size: 12pt;"><strong>(iv) </strong>SFBs have to mandatorily list within 3 years of net worth reaching <strong>~500 crores.</strong></span> <span style="font-size: 12pt;"><strong>(v)</strong> SFBs can distribute third-party financial products only after 3 years of operation.</span>
<span style="font-size: 12pt;"><strong>“A revolution in the making”</strong></span> <span style="font-size: 12pt;"><strong>The Story:</strong></span> <span style="font-size: 12pt;">Paytm is like a one-stop solution provider in the digital space, be it in transactions, shopping or investing in mutual funds. It has simplified banking and transactions to a much simpler level. It is viewed as a fin-tech company, a digital marketplace, and/or an application for monetary exchange. Paytm has applications ranging from a digital payments bank, ‘Paytm Payments Bank’ that allows users to open a digital account with Paytm to a mutual fund platform, Paytm money that makes investing simple and direct (with no commission). Paytm phenomenon has spread so rampantly that any shop, ranging from a local Kirana shop to a large retailer accepts transactions digitally through Paytm.</span> <span style="font-size: 12pt;"><strong>Entrepreneurship behind ‘Paytm’:</strong></span> <span style="font-size: 12pt;">Paytm, part of One97 Communications is founded by ‘Vijay Shekhar Sharma’. He is deeply passionate and committed to bringing India to the forefront of digital disruption with Paytm. His dream is to scale Paytm to the likes of the giants and be an example of “Made in India”.</span> <span style="font-size: 12pt;"><strong>Opportunities:</strong></span> <span style="font-size: 12pt;">Paytm is changing the day-to-day operations of urban consumers in India largely. It is disrupting the channel of ‘cash’ based transactions with the help of ‘e-wallets’. With the help of QR code or a phone number, transactions are being carried in seconds. This presents a huge opportunity for Paytm to change the minds of consumers from traditional banking to digital space. Paytm has forayed into the financial services platforms like ‘Investments’, ‘Insurance’, and ‘Payments Bank’. Paytm is currently the largest ‘e-wallet’ in India. As of 2018, only 7.6% of the population of India uses e-wallets[1]. This statistic shows the under penetration of digital wallets in India and the scope of growth it offers. The wallet space has been growing at a CAGR of nearly 30% for the past 3 years.</span> <span style="font-size: 12pt;">The key ‘Growth Drivers’ in this area include</span> <span style="font-size: 12pt;"><strong>a)</strong> Government initiatives like ‘Demonetization’ and UPI (unified payments interface), which helps people move towards digital wallets, thereby increasing the market share of Paytm.</span> <span style="font-size: 12pt;"><strong>b)</strong> Increase in penetration of smartphones with good internet connections’ helps in people shifting to digital wallets and online transactions. The transactions through Paytm are very smooth, efficient and simple to execute.</span> <span style="font-size: 12pt;"><strong>c)</strong> ·Paytm’s own marketing and advertising strategies help in gaining market share. Network effects. (More people using the same platform induces oneself to use it too)</span> <span style="font-size: 12pt;"><strong>Shareholding Pattern:</strong></span> <span style="font-size: 12pt;">One97 Communications Limited has marquee investors from all around the world. ‘Eminent Investors’ like Warren Buffett and Masayoshi Son (through their investment companies like Berkshire Hathaway and Softbank funds); ‘Visionaries’ like Jack Ma (through Alibaba) form the shareholder base. Paytm might benefit immensely with years of experience of veterans running the above companies. Paytm can gain insight into what the leading investors and visionaries are focussing on.</span> <span style="font-size: 12pt;"><strong>Challenges & Competitors:</strong></span> <span style="font-size: 12pt;">Firstly, there are no barriers to entry in the digital wallet and services space. It is essential to be efficient and be an innovator to retain the market share. Secondly, with many multinationals looking to be a part of the growth story of India have developed services equivalent to that of Paytm. For example, Tez from Google, PhonePe from Flipkart offer online transactions similar to Paytm. In Payments bank space, Airtel Payments Bank and Digibank by DBS (backed by Govt. of Singapore) present a challenge to Paytm.</span> <span style="font-size: 12pt;">Even traditional banking presents a challenge to all digital fin-tech companies, that of direct physical interaction with the customers. Even though consumers are changing their preferences, many people still are agnostic to the digital changes happening simply because there is no physical interaction possible with the agents and/or no physical branches present. Nevertheless, this is the cost as well as the differentiator of a digital bank</span> <span style="font-size: 12pt;"><strong>FINANCIALS:</strong></span> <span style="font-size: 12pt;"><strong>Total Income:</strong></span> <span style="font-size: 12pt;">The revenues have grown at a CAGR of nearly 100% for the past two years and the room for growth is phenomenal.</span> <span style="font-size: 12pt;"><strong>Net Income:</strong></span> <span style="font-size: 12pt;">The losses are due to the intense expansion Paytm is undertaking in its projects.</span> <table> <tbody> <tr> <td style="text-align: center;"><span style="font-size: 12pt;"><b> Particulars</b></span></td> <td style="text-align: center;"><span style="font-size: 12pt;"><b> 2018-19(Cr)</b></span></td> <td style="text-align: center;"><span style="font-size: 12pt;"><b>2017-18( Cr)</b></span></td> <td style="text-align: center;"><span style="font-size: 12pt;"><b>2016-17(Cr)</b></span></td> </tr> <tr> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">FV</span></td> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">10</span></td> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">10</span></td> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">10</span></td> </tr> <tr> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">Revenue</span></td> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">3579</span></td> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">3314.8</span></td> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">780.19</span></td> </tr> <tr> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">Expense</span></td> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">7730</span></td> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">3884.95</span></td> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">1961.29</span></td> </tr> <tr> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">PAT</span></td> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">-4172</span></td> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">-1604.34</span></td> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">-899.64</span></td> </tr> <tr> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">EPS</span></td> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">-743</span></td> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">-318.44</span></td> <td style="text-align: center;"><span style="font-weight: 400; font-size: 12pt;">-194.73</span></td> </tr> </tbody> </table> <span style="font-size: 12pt;"><strong>CONCLUSION:</strong></span> <span style="font-size: 12pt;">Paytm stands to benefit from the explosive growth happening in India in the digital space. Nevertheless, its competitors also take a share of the growing pie. What makes Paytm stand out is the first-mover advantage in the minds of consumers that will play a role to a certain extent and the rapid scaling of the network to almost all throughout India. This is evident from the market share it commands UPI-based merchants payments, nearly 60%[3]. Paytm is very well integrated across all services, which many of its competitors lack. If Paytm tries to offer value to consumers by constantly innovating, it can prosper for a very long time.</span> <span style="font-size: 12pt;"><strong>Disclaimer:</strong></span> <span style="font-size: 12pt;">~This is not investment advice. The article published on UnlistedZone is only for educational purpose. Please consult your financial advisors to buy or sell shares.</span> <span style="font-size: 12pt;"><strong>Ref:</strong></span> <span style="font-size: 12pt;">[1] Statistics from https://www.emarketer.com/content/the-mobile-payments-series-india</span> <span style="font-size: 12pt;">[2] Annual report (2018-19) - One97 Communications Limited.</span> <span style="font-size: 12pt;">[3] https://www.livemint.com/companies/start-ups/paytm-dominates-upi-merchant-payment-segment-with-60-share-1560160951172.html</span>
Paytm became a household name overnight when the Indian government announced demonetization in Nov-16. From thereon the company is continuously gaining market share and currently, Paytm dominates UPI merchant payment segment with 60% share. The company provides telecom based value-added services to various telecom operators across the territory, payment gateway aggregator services, ticket services, utility bills payments, insurance, hotel booking services, etc. Recently, they got the license to operate as a stockbroker and they are also planning to give investors an option to buy direct mutual funds from their platform. The company is generating 56.86% revenue from Payment bank and 34.90% of the revenue from e-commerce The company has raised a lot of money in the last 4-5 years from foreign investors. The Berkshire Hathway in August-2018 had invested in Paytm at a valuation of 10 Billion dollars i.e ~ 68000 Cr. Recently, in the secondary round a few months back the company valued at 16 billion Dollar i.e. 1,12,000 Cr. The company in FY18-19 also issued ESOPs for a weighted average fair price of INR 6823. As on date, out of total paid-up capital, 83.04% (approx.) is held by Foreign Investor under Foreign Direct Investment scheme of RBI. The Foreign investors are One97 Communications Singapore Private Limited, One97 Communications Nigeria Limited, One97 USA Inc. One97 Communications FZ-LLC and Ciqual Limited. As on 31.03.2019, the company has 33 subsidiaries. Out of these, only 5 subsidiaries are in profit this year. The Paytm being the fancied name in the Indian market still not able to generate the kind of return investors were looking at. The losses are mounting like a pine tree. It has increased to Rs. ~4000 Cr in FY18-19 from Rs. ~800 Cr in FY16-17. The Payment gateway expense, Marketing, and business promotion, and Add expense contribute to the bulk of Paytm expense. In FY18-19, it has incurred an expense of 2253 Cr, 2823 Cr, and 619 Cr respectively in above heads. The most surprising part was the revenue growth in the year FY18-19. It was mere 6% as compared to last year which is the real concern. The Paytm has clocked a revenue of ~3500 Cr this year as compared to ~3300 Cr last year. With losses mounting and revenue not coming as desired, the path ahead is not easy for Paytm, especially when there is a big competition coming from players like Google Tej, and Phone-Pay. Currently, the Paytm share is available in the unlisted market at Rs. 16000 per share, thereby giving a valuation of ~ 91000 Cr. Paytm more detail can be accessed at: <span style="text-decoration: underline;"><a href="https://unlistedzone.com/shares/paytm-unlisted-share-price-market-value-today/.">Paytm Unlisted Share</a></span>
Indicative prices, company research and your enquiries — in your pocket. Get price notes on the names you follow and reach our team from anywhere.
