Watch Out for these Upcoming Indian Tech Startup IPOs
Since the industrial revolution, technology has been hailed as a game changer for human civilisation. However, it is only in the last few decades that we have seen how dramatically technology has altered our daily life.
As we emerge from the pandemic, the Indian technology startup ecosystem continues to flourish on the strength of increased digitisation and tech usage.
There is currently no better place than India to find the most visible proof of this wave, in the form of a tech initial public offering(IPO) boom that has an amazing line-up of stock market listings that have piqued investor attention.
It all started with Zomato, which was recently welcomed to the stock exchanges with wide arms by investors.Zomato, a food delivery service, became the country's first unicorn to go public, raising $1.3 billion alongside Morgan Stanley, Tiger Global, and Fidelity Investments as investors.
Zomato, went public on Indian stock exchanges in mid-July. Its first public offering (IPO) was 35 times oversubscribed, valuing the company at $12 billion.
Zomato's initial public offering (IPO) is worth Rs 9,375 crore (IPO). The firm began trading on July 14, 2021, with a price range of Rs 72 to 76 per share.
It consists of a fresh new equity share offering at Rs 9,000 crores. Existing Info Edge investors have made an offer for sale (OES) of Rs. 375 crore. The IPO represents a significant increase above Zomato's previous Rs. 8,250 crore shares, which were filed with SEBI in April 2021. Last week, though, the firm received authorisation to begin the IPO.
Following the present trend, a slew of domestic start-ups are planning to list on stock exchanges in the coming months. Let's take a look at which unicorn companies are looking to list in India.
Prior to its IPO, Policy Bazaar, situated in Gurugram, may aim for a valuation of $3.5 billion. Yashish Dahiya, Alok Bansal, and AvaneeshNirjar created Policy Bazaar in June 2008, which is sponsored by EtechAces Marketing and Consulting. With the Policy Bazaar IPO, EtechAces, which owns Paisa Bazaar, might enter the key markets.
Policy Bazaar stated in its draft red herring prospectus (DRHP) submitted with the market regulator that it plans to raise $37.5 billion in a new issue and the remaining $22.7 billion in a secondary sale via an offer for sale (OFS).
As India's digital economy grows, the insurance aggregation firm has the potential to be the first of the country's mega startups to launch.
Delhivery, an Indian delivery and supply chain startup, is set to go public in the next 6-8 months, with a market capitalization of $3.5-4 billion. It intends to raise $400 million to $500 million via the public offering.
FedEx Express, a part of global delivery services company FedEx Corp, invested $100 million in Delhivery.
Softbank Carlyle Group, Tiger Global, Steadview Capital, Fosun International, and Nexus Venture Partners are among the company's investors.
FalguniNayar's Indian lifestyle marketplace for beauty, wellness, and fashion products, Nykaa founded in 2012, is expected to go public, valuing the company at around $4 billion.
This unicorn startup, the largest in its category in India, has filed a DRHP with the market regulator for its initial public offering.
Nykaa, India's largest in its space, has filed a DRHP with the market regulator for its public offering. Nykaa intends to issue up to 43 million shares worth $5.3 billion. Despite the pandemic, industry analysts believe it is timely.
Paytm, an Indian multinational technology company that specialises in digital payment systems, e-commerce, and finance, plans to go public with a 166 billion rupee IPO as soon as possible, most likely in October.
The Paytm IPO is expected to be the largest in India's IPO history. It's anticipated to outperform Coal India's $150 billion initial public offering, which is the largest in Indian history. On July 15, 2021, the firm submitted draught papers with the market regulator for its maiden share offering.
It hopes to hear back from the capital market regulator by mid-September, after which it intends to begin the listing process as soon as feasible.
The company intends to raise 83 billion through new share offering and another 83 billion through an OFS, according to the draft document.
The amazing list of tech IPOs that we are seeing today is a tribute to the Indian markets' growth.
Gone are the days when an IPO's stock price was determined entirely by its prior performance and profitability. The market sees value in these businesses and is willing to put money into their future.
As things stand today, India's new economy appears to have a very promising future. However, a kind of gold rush in the tech startup area here may invite increasing regulatory scrutiny. As a result, any changes in rules or compliance requirements that may emerge in the next months must be kept in mind.