“Most of these new-age tech IPOs saw healthy oversubscriptions, but unreasonably high valuations, complex business models and controversies further added to the toll,” Singh said. Liquidity from central banks and rising bond yields have weighed on the valuations of these stocks. Another factor that makes these stocks more vulnerable, as these new-age tech companies are essentially ‘classic growth’ stocks, is investor preference for gradually increasing rates, inflation concerns and the high potential for geopolitical crises. The price is shifting between the shares.
Ravi Singhal, Vice Chairman, GCL Securities Ltd. said that all IT stocks in the US market have declined and we believe that as interest rates rise, it will be negative for companies that do not generate sufficient liquidity in the long run. Huh. Looks good, but there’s still something left. Alarmingly for the startup ecosystem, private equity and venture capital investments declined by 25 per cent-30 per cent M-O-M in April 2022, said Shivam Bajaj, Founder and CEO, Avenor Capital.
Big IPOs of 2021-22
“Furthermore, proud startups including Nykaa, Zomato and Paytm continue to undercut investor wealth by trading at almost 50 per cent below their listing prices,” Bajaj said, adding that the 2022 YTD by Indian startups With more than 6000 employees laid off in the U.S., the capital provider may prefer to delay its plans to spread its dry powder in anticipation of future changes in the industry. According to Prime Database, the biggest IPO in 2021-22 came from One97 Communications (Paytm) for Rs 18,300 crore. It is followed by Zomato (Rs 9,375 crore), Star Health (Rs 6,019 crore), PB Fintech (Rs 5,710 crore), Sona BLW (Rs 5,550 crore) and FSN E-commerce (Rs 5,350 crore). Stayed.
Four of the top 6 IPOs were from New Age Technology Companies (NATCs), which together raised Rs 38,734 crore. In a recent development, as per reports, Jack Ma-led Alibaba and Ant Financial have pulled out of Paytm Mall’s parent unit Paytm E-Commerce Pvt Ltd. Paytm E-commerce bought back the entire stake of Alibaba (28.34 per cent) and Antfin (Netherlands) Holding (14.98 per cent) for Rs 42 crore. In its final fundraising in 2020, the valuation of the company has fallen from $3 billion to Rs 100 crore.
LIC Share Listing: Country’s largest IPO happened, investors lost crores
