One 97 Communications (Paytm) rose 4.32% to Rs 523.15, extending gains for the second trading session.
Shares of Paytm have risen 8.62% in two sessions. The stock hit has jumped 19.01% from its record low of Rs 439.60 hit on 24 November 2022.Meanwhile, the company on Thursday (1 December 2022) informed that at present it makes net payment margin of 7 to 9 bps of GMV on processing. Of which UPI gives us 3 to 4 bps and other instruments give 15 to 18 bps. "Since UPI is growing faster than other instruments, we expect blended margin to stabilize at 5 to 7 bps," the company said.
The company believes that the current phase is the early days of payments in India. UPI has about 25 crore signed up customers, and there are only total of about 1 crore devices in market.
"We believe overall subscriptions for payment and other services will be a large market. India could have potential of 10 crore merchant entities and more than 50 crore payment customers in near term. Expanding merchants' business by offering coupons, deals, marketing and loyalty will create more revenue and profit for our commerce business," Vijay Shekhar Sharma, founder & CEO, Paytm said.
The company sees great opportunity in bank partnerships to sell their products. "Bank partnerships to sell their products have a great opportunity: FASTag and Co-branded Credit Card are already a success, and EMI Aggregation on PG, Remittance among others could be next. In financial services, we will focus on growing loan and stock brokerage offerings," Sharma added.
Japanese conglomerate SoftBank Group sold 4.5% stake in Paytm via bulk deal on 17 November 2022. As of 30 September 2022, SoftBank held a 17.45% stake in Paytm through SVF India Holdings (Cayman).
The sale followed the end of one-year mandatory lock-in for pre-IPO investors in Paytm. The stock entered the bourses on 18 November 2021. It was listed at Rs 1955, a discount of 9.07% compared with the initial public offer (IPO) price of Rs 2150. The IPO of Paytm was subscribed 1.89 times. The issue opened for bidding on 8 November and it closed on 10 November. The price band of the IPO was fixed at Rs 2080 to Rs 2150 per share.
SoftBank had invested $1.6 billion in Paytm and had sold a partial stake worth $220-250 million in the IPO last year.
Meanwhile on 17 November 2022, BOFA Securities Europe SA bought 50,26,428 equity shares (0.77% equity) of Paytm. Morgan Stanley Asia Singapore PTE bought 60,03,468 equity shares (0.93% equity) and Societe Generale - ODI bought 70,85,227 equity shares (1.09% equity).
One 97 Communications is the digital financial services firm which operates under the Paytm brand. Paytm is India's payment super app offering consumers and merchants comprehensive payment services.
On a consolidated basis, One 97 Communications' revenue surged 76.2% to Rs 1914 crore in Q2 September 2022 over Q2 September 2021. The revenue was driven by increase in merchant subscription revenues, growth in bill payments due to growing MTUs (monthly transacting users) and growth in disbursements of loans through platform. However, the company's consolidated loss widened to Rs 571.10 crore in Q1 June 2022 from net loss of Rs 472.90 crore a year ago.
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