Five top technology upstarts that came with their IPOs over the past 18 months have seen drop in their prices since listing. The parent company of payments company Paytm has suffered the most due to worries about valuations and rising global rates. The owner of the beauty e-retailer Nykaa, the logistics company Delhivery, the operator of the online insurance marketplace Policybazaar, and the delivery startup Zomato are the other victims.
In 2021, Indian IPOs raised a record $18 billion thanks to government initiatives to support entrepreneurs, easy-money policies, and a rise in retail trading during the epidemic. Even though the larger Indian stock market has outperformed its rivals globally and reached new highs, investors have lately sold off high-profile tech shares.
One 97 Communications Ltd., the company that owns Paytm, fell as much as 10% on Thursday as early investor SoftBank Group Corp. reduced its holdings after the IPO lock-up period expired. In a similar move, Uber Technologies Inc., a former investment in Zomato Ltd., left the online food delivery business in August. Abhay Agarwal, a fund manager at Piper Serica Advisors Pvt., advised novice investors against bottom-fishing in these stocks if the company has no obvious route to profitability.
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