Paytm, Zomato, Nykaa, Delhivery, Policybazaar: An $18 bn wipeout is the tough fact of 5 famed India IPOs

• ByStartupStory     |    November 17, 2022

Five of the most-hyped preliminary public services in India during the last sixteen months have floundered due to the fact that listing, dropping greater than $18 billion in value.

Concerns over valuations and growing worldwide prices have taken the largest toll at the discern of bills organization Paytm. The different sufferers encompass shipping startup Zomato, the proprietor of splendor e-store Nykaa, logistics organization Delhivery and the operator of on-line coverage market Policybazaar.

Indian IPOs raised a record $18 billion in 2021 on authorities’ efforts to foster startups blended with easy-cash coverage and a surge in retail buying and selling all through the pandemic. But buyers have due to the fact that they dumped high-profile tech stocks, while the wider Indian inventory marketplace has outperformed worldwide friends and scaled new peaks. “Valuations of those businesses had been now no longer supported through basics and the stability sheets, and their coin burn turned into high,” stated Arun Malhotra, a portfolio supervisor with CapGrow Capital Advisors LLP. As massive buyers curtail their holdings, unlocked stocks are included to deliver and that is accelerating the charge declines, he stated.

It discern One ninety seven Communications Ltd. plunged as a good deal as 10% Thursday after early investor SoftBank Group Corp. diminished its stake following the give up of its IPO lock-up period. Uber Technologies Inc., an early investor in Zomato Ltd., further exited the net food-shipping organization in August. “New buyers must now no longer backside fish in those shares if the organization has no clean direction to profitability,” stated Abhay Agarwal, a fund supervisor at Piper Serica Advisors Pvt.

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