IPO postings reveal a Rs 2 lakh crore depreciation, with IT businesses accounting for half of the total.

• ByStartupStory     |    January 25, 2022

The market’s recent selloff has wiped out over Rs 2 lakh crore from recently listed shares, including major names such as One97 Communications (Paytm), FSN E-Commerce Ventures (Nykaa), Zomato, PB Fintech (PolicyBazaar), and CarTrade. Nazara Technologies, a gaming company backed by billionaire investor Rakesh Jhunjhunwala, has mostly escaped the latest downturn in tech-enabled, consumer-facing businesses.

Six tech-enabled, new-age enterprises that went public in 2021 have lost roughly Rs 1.2 lakh crore in market capitalization since then. Nazara Tech, on the other hand, remains inexperienced, with a market worth of around Rs 3,000 crore since its IPO.

According to merchants, the recent tech rout in the US markets has contributed to the selloff in these shares in the Indian market. The Nasdaq Composite index in the United States is down a little more than 18 percent, and it will technically enter bear territory if it falls 20% or more from its last high in mid-November. Professional fund managers are turning away from shares of companies with high growth potential and toward value shares, which are shares of well-established companies.

According to Arun Kejriwal, director of the funding advisory firm KRIS, some tech-enabled firms have listed since mid-2021 because the market is in a bull phase. Despite the fact that most were losing money, the stocks performed well on the stock exchanges, attracting a large number of traders. These stocks are also feeling the heat from the selloff by local traders now that the US market is on the decline.

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