Madhur Deora, President & Group CFO of Paytm, on Monday, said that it's tough to compare the company's valuations with banks.

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Noida-based One97 Communications ― the parent company of digital payments startup Paytm ― is set to launch a Rs 18,300-crore initial public offering (IPO) on Monday, November 8. Paytm shares will be available for bidding in the price band of Rs 2,080-2,150 under the initial share-sale.

The initial share-sale of Paytm will close for subscription on Wednesday, November 19. The Paytm IPO, if successful, will be the largest in India.

Also Read: Paytm IPO subscribed 9% so far on Day 1

“Valuations are decided by investors. It is harder to value a company like Paytm than a bank or an NBFC or traditional manufacturer or something like that, which is why this anchor process is very helpful for investors to understand whether the bluest of bluechip investor from around the world thinks that this valuation is fair or not,” Deora said.

Also Read: Paytm to launch mega IPO today; should you subscribe?

On business, he said, “We are roughly 40 percent market share of digital payments in the country; maybe that's a number that I can quote because it was in the prospectus. The other numbers are either available from National Payments Corporation of India (NPCI) website or not available at all, but the important takeaway, the starting point of any research should be that Unified Payments Interface (UPI) is one of the networks and there are multiple ways to make digital payments in the country.”

“It is a common misunderstanding for people to think that UPI market share equals payments market share in India. UPI is one of the networks on which payments happen in India, there are several other networks such as Visa, MasterCard, RuPay,” said Deora.

For the entire management interview, watch the video

(Edited by : Thomas Abraham)