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Paytm IPO: Valuation guru Ashwath Damodaran says, ‘I want Paytm in my portfolio’

Paytm IPO: Valuation Guru Ashwath Damodaran is very optimistic about Paytm IPO, says ‘I want Paytm in my portfolio’

Paytm IPO: India’s leading digital payments and financial services platform Paytm is making its market debut with a target of raising $2.2 billion in what is considered India’s biggest IPO and the IPO is already encouraging gurus in the financial services industry. Used to be. Ashwath Damodaran, an award-winning professor of finance at the Stern School of Business at New York University, recently said in an interview with an Indian news channel that he would bet on Paytm.Also Read – LPG Cylinder Booking Offer: Cashback up to Rs 2700 on LPG booking from Paytm, know how to avail benefits?

Damodaran said, “Paytm has some real potential because I think it is a business that is huge, payment processing and financial services are huge. If I can get Paytm at the right price, I want it in my portfolio.” Also Read – LPG Cylinder New Connection: Give a missed call and get a new LPG connection, know what is the whole process?

Damodaran teaches equity valuation at Stern, and is also known as the ‘Dean of Valuation’. Also Read – Zomato Sets Up New Digital Payments Subsidiary, Know Everything Here

Many other startups like Ola also want to debut in the stock market. When asked what makes the company or the sector interesting, Damodaran said, “There are two things I look for in areas that are likely to be disrupted: One is how big the market is. Financial services is a huge market. Automobiles are a huge market. The second thing I am looking for is the current status quo.”

“An indicator that a business is going to be disrupted is if someone is not happy – customers are not happy, companies are not happy, regulators are not happy. Let’s face it, the state of the game is in financial services right now. I think there are areas where disruption is only going to happen because things are not working out the way it is now.”

But what if they have to choose between Paytm and Ola? He said, “I would prefer Paytm over Ola as ridesharing business is a complete disaster across the world. Ridesharing is one of those businesses where they have figured out how to grow, but no one seems to have figured out how to make money and it’s not just Ola, it’s Didi, Grab, Uber, Lyft. Is.”

Paytm was providing payment services, commerce and cloud services and financial services to 333 million consumers and over 21 million merchants as of March 31, 2021. Paytm is the largest payment platform in India by number of subscribers, number of merchants, number of subscribers.

Paytm is the largest payment gateway aggregator in India with a wide ecosystem of payment instruments based on total transactions.

(With IANS Inputs)

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