What portion of your salary should you spend on loan EMIs?
Most people buy a house or a car by taking a loan from the bank, but do you know what is the maximum portion of your salary that you should spend on EMI? What is the 40 percent EMI rule? What are the disadvantages of spending more on EMIs? Among home loan, personal loan, auto loan and credit card bills, which loan should you eliminate first?
The initial public offer (IPO) of One97 Communications (Paytm) received bids for 9,14,09,844 shares as against 4,83,89,422 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (November 10, 2021). The issue was subscribed 1.89 times. The retail individual investors category was subscribed 1.66 times. The qualified institutional buyers (QIBs) category was subscribed 2.79 times and non institutional investors category was subscribed 24%.
The issue opened for bidding on November 8 and closed on November 10. The price band of the IPO was Rs 2,080 to Rs 2,150 per share. An investor could bid for a minimum of six equity shares and in multiples thereof.
The IPO consists of a fresh issue to raise Rs 8,300 crore and an offer of sale (OFS) worth Rs 10,000 crore. Out of the net proceeds, the company proposes to utilize Rs 4,300 crore towards growing and strengthening Paytm ecosystem, including through acquisition and retention of consumers and merchants and providing them with greater access to technology and financial services, Rs 2,000 crore for investing in new business initiatives, acquisitions and strategic partnerships and balance for general corporate purposes.
In addition, the company expects to receive the benefits of listing of the equity shares on the stock exchanges, including among other things, enhancement of company’s brand name among existing and potential consumers and merchants, retaining existing and attracting potential employees, and creation of a public market for the equity shares in India.
One97 Communications (Paytm) is one the largest payments platform in India based on the number of consumers, number of merchants, number of transactions and revenue ended March 2021. The company launched Paytm in 2009, as a mobile-first digital payments platform to enable cashless payments for customers giving them the power to make payments from their mobile phones. It started with bill payments and mobile top-ups as the first use cases, and Paytm Wallet as the first Paytm Payment Instrument.
The Paytm app is a payments-led super-app offering consumers with innovative and intuitive digital products and services. It offers consumers a wide selection of payment options on the Paytm app, which include (i) Paytm Payment Instruments, which allow them to use digital wallets, sub-wallets, bank accounts, buy-now-pay-later and wealth management accounts and (ii) major third-party instruments, such as debit and credit cards and net banking.
The company posted a revenue of Rs 890.8 crore and a net loss of Rs 381.9 crore in the quarter ended June 2021.