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I got an advise from my DP to apply for PayTM IPO, but I didn't. I could not see any value in the company for the issue price mentioned. I have been using their services for the past few years, but now there are others who are better. I still use their wallet because I have their Fastag, otherwise I would have discontinued. Earlier we could reload their wallet for whatever amount we wanted, from which money will get transferred to the Fastag wallet. Now we can load the wallet for a minimum 1000 rupees only. Earlier we could make payments from their wallet only, only recently they made UPI payment possible.

For all other purposes I find Googlepay much better.

Are you sure about this? Because, I just checked and found that there is no restriction as such. Agree that it shows Rs1000 by default, but you can change that value to whatever you would like to.
Btw, even I am forced to keep this Paytm account active because of my fastag. Otherwise, I would have closed this account as I am not using it for any other transactions.

Is this (weeping) what you are talking about ? https://www.youtube.com/watch?v=lT8vYjED-AU
Also, just curious , where is the greed or when did he become greedy ? or what makes him greedy ?

Correct, it is possible to edit the amount. I didn't try that earlier because it showed the amount in bold and also suggested automatic replenishment of the same amount. I thought it was the default amount.

The Fastag experience is very smooth and seamless though. Also I use the wallet for certain purchases (Eg;Apollo pharmacy) for remote purchases. I order by Whatsapp, they have PayTM billing. While billing they call me, I tell them the OTP appearing in the App and the payment goes through. Within minutes the items are delivered to my door.

I don't usually agree with this man, but what he says in this video are more or less my thoughts about companies like Zomato and PayTM.

https://youtu.be/_jtR8WpmvLA

Macquarie initiated coverage of Paytm with an under perform rating and target of 1200.
Could be one of the reasons for the IPO tanking.

Macquarie report

I fail to understand how PayTM can have a higher share price than HDFC Bank, which is a decades old, profit making bank? What is the logic behind it's valuation? I fail to see what business model it has to ever make a profit. I don't see it making a profit even a few years down the line.

Say that to an investment banker or PayTM CEO and he will say:



rl:rl:

I am sure this news article was timed to release on the same day as this IPO and it made it's presence felt.

Reddit comment "Retail investors have delivered a 27% cash back to exiting shareholders of PayTM. The score is even now."

Joke is one me! see the list of mutual funds invested in Paytm IPO

I had initially applied for three lots of the paytm IPO, hoping for some listing day gains (shame shame) but cancelled on the very next day seeing the tepid response. I have saved myself a few hundred rupees of heartburn.

Most startups (some of them can barely be called so after being in existence for donkeys years) are trying to cash in on an overheated market fueled by money printing. They really have no further 'value' to be discovered as all of them carry crazy multiples of their current market price to their book value. Nykaa's is at 161x while Infosys is at 10x for example. The likes of Zomato and Paytm do not even offer any established evaluation metric as they do not report profits and do not plan on doing so anytime in the future. Thus no EPS, PE etc to even attempt a basic valuation.

Their common refrain is that startups are not to be judged by conventional financial ratios. That's fine but when an e wallet like Paytm starts losing revenue YOY, like they did for 2021, you wonder what is the value proposition for such a digital payments company which cannot earn more revenue during a phase when the whole world was being asked to shop from indoors by paying digitally? Currently there are perhaps more means of paying virtually than some people have actual money, so what is the justification for 100k+ CR offering when they do not have anything new and exciting to offer? An Ola is still trying to do something new by getting into EV, never mind the poor execution so far but what is Paytm's USP?

Sadly its just a way for wealth funds to get an exit at the retail investor's expense. The RBI has also taken note and announced limits for IPO financing, albeit for NBFCs
https://www.businesstoday.in/latest/...188-2021-10-22

This is a good reminder about the hype created by such market events which are more to do with global money rushing in and pushing up all and sundry in its wake. Many retail investors get their fingers burnt and leave the market, never to return

Rightly put. These guys rolling in VC money thought they can get away with anything. Market has shown them the mirror.

I wouldn't be surprised if Paytm becomes a penny stock down the line.

I doubt the article is about paytm. There are so many fintech companies providing instant loans today that without really naming them, the whole article is speculative. The raid has been conducted in Delhi and Haryana, so it may also be indiabull's run dhani app. They have a very chequered history.

Is Paytm a good buy for long term, given the fall in price post listing?