#Swiggy IPO opening

[rightnewshindi]

Swiggy IPO; स्विगी 4,499 करोड़ रुपये के नए शेयर जारी करेगी, जानें कब खुलेगा आईपीओ और कितना मिलेगा लिस्टिंग गेन

Swiggy IPO: फूड और ग्रोसरी डिलीवरी कंपनी स्विगी अगले सप्ताह अपना इनिशियल पब्लिक ऑफरिंग (IPO) के लॉन्च के साथ शेयर बाजार में एंट्री करने के लिए तैयार है। स्विगी का आईपीओ 6 नवंबर को बाजार में आएगा। सॉफ्टबैंक के समर्थन वाली कंपनी स्विग्गी अपने आईपीओ के तहत प्राइमेरी मार्केट से 11,000 करोड़ रुपये से ज्यादा जुटाने की योजना बना रही है। नॉर्वे के सॉवरेन वेल्थ फंड नोर्गेस और फिडेलिटी समेत कई प्रमुख…

[todayworldnews2k21]

Swiggy IPO Opens Today, November 6: Should You Subscribe? All You Want To Know

New Delhi: The initial public offering (IPO) of food delivery and quick-commerce major Swiggy is all set to open today. Swiggy is looking to raise Rs 11,300 crore through its IPO. A day before its initial share-sale opening for public subscription, Swiggy on Tuesday collected Rs 5,085 crore from anchor investors. Among the investors who were allocated shares are New World Fund Inc, Government…

[vedantbhoomidigital]

Swiggy IPO: GMP rises before launch, will it be right to invest?

The IPO of online food delivery giant Swiggy is going to open from 6 November 2024. There has been a stir in the gray market regarding this public offer. According to market sources, Swiggy's unlisted shares are trading at a premium of Rs 20, which is above its upper price band of Rs 390 (…).

[odnewsin]

Swiggy IPO news: Company seeks valuation of $11.3 billion; IPO to open Wednesday

New Delhi: Food delivery and quick-commerce major Swiggy, which is coming out with its initial public offering (IPO) Wednesday, is seeking a valuation of about $11.3 billion. The Bengaluru-based company is aiming to garner Rs 11,327 crore from the IPO, which will comprise a fresh issue of shares worth Rs 4,499 crore along with an offer for sale (OFS) of Rs 6,828 crore. Swiggy has set a price band…

[biguull]

Swiggy IPO GMP, Issue Size, Open Date, Price Band, Allotment Status

Swiggy IPO GMP quotation is around Rs 98 per share. It is expected that lower and upper price band to be around Rs 160 per share. The grey market premium quotation indicates huge interest of retail investors. GMP quote will be available after the release of the IPO issue date It is expected that Swiggy IPO open date will be in the last week of November 2024. This new IPO is a book-built issue of Rs 10,400 crores. This upcoming IPO is a combination of fresh issue and offer-for-sale. It is expected that the amount of fresh issue will be around Rs 3,750 and offer-for-sale is not yet finalised. Swiggy IPO GMP quotation is around Rs 98 per share. Swiggy IPO GMP might rise in the coming days if the subscription got oversubscribed. It is expected that Swiggy IPO price band will be above Rs 160 per share. The final price band is not yet released. The minimum amount of investment for the retail category is to be around Rs 14,850, for small NII is to be around Rs 2,01,000 and for the Big NII is to be around Rs 10,01,000. Swiggy IPO open date and close date is expected to be near to 25 November to 29 November 2024. It is expected in the last week of November 2024. However, as of now the open and close date is not yet finalised. It is expected that Swiggy IPO allotment status will be finalised in the last week of November 2024. The listing will be on the BSE and NSE platforms in the first week of December.It is expected that the Swiggy IPO listing date will be in the first week of December 2024. The Listing will be on both the exchanges NSE and BSE.

Read More at Bigul 

[stockknock]

Five ways for trading unlisted shares in India

An unlisted company is one that is not listed on any formal stock exchange. However, shares of these company are sometimes available for trade on over-the-counter (OTC) markets. Examples of unlisted companies in India being traded in the OTC markets include: Swiggy, Oyo, Serum, CSK, Reliance Retail etc.  Previously, unlisted investment could only be accessed by big banks, hedge funds, private equity companies etc. However, today since shares are available in dematerialised format and there is much more awareness about the financial industry, it is possible for any investor to invest in trading unlisted shares. Today we will discuss some of the commons ways investors can trade in unlisted shares in India.

Pre-IPO Funds

The first way we can invest in unlisted shares is to invest via Pre-IPO funds. Pre-IPO funds specialise in investing in companies that are currently unlisted but will soon get listed on a formal exchange. Pre-IPO Funds pool money from investors and give them an opportunity to invest in companies before they go public at lower valuations and then to reap rewards of the post-IPO valuation. These funds are often availed by prominent retail investors, HNI’s and large family offices. The first AMC to come with dedicated Pre-IPO funds is IIFL AMC. As per information, they are managing Rs 10,000 crore in pre IPO funds, with returns in the range of 10%-15%. Recently, Kotak Investment Advisors also raised Rs 2000 Crore in their Kotak pre-IPO Opportunities Funds. 

Portfolio Management Services or Alternative Investment Funds

Another way to buy unlisted stocks as an investment is to avail Portfolio Management Services (PMS) or Alternate Investment Funds (AIF). These funds are professionally managed investment portfolios backed by extensive due diligence by a team of highly qualified research analysts. These portfolios are actively managed so that they are always adapting to market trends and performances. Investors can invest in PMS or AIF that specialise in unlisted shares. There is less risk via this route due to (i) thorough research (ii) professional management (iii) diversification of capital.

Intermediaries

There are intermediaries likebrokerage firms and wealth management firms that specialise in investing in the unlisted space. Investors can open a DEMAT account with these intermediaries and carry out the transaction through them. The payment gets completed upfront, and the delivery is done in T+3 days. Due to lack of official regulation in the unlisted space, there is counterparty risk involved. Counterparty risk is if the payment is made, however the delivery of the shares is not completed successfully. However, if the intermediary is of reputable name, the counterparty risk involved is minimised.

Employee Stock Ownership Plan

Some large-scale organisations offer their employees stock options known as ESOPs whereby employees get equity ownership in the Company. These ESOPs allow employees to buy the Company's shares at a prespecified rate and after a predefined period. If the employees wish to redeem or sell off their unlisted shares holding, investors can purchase unlisted equity from them.

Private Placement

Private placement is where promoters of a Company want to liquidate their own stake in the Company and therefore put their equity ownership up for sale. Usually, this process is carried out by wealth managers or intermediaries. This route allows investors to trading unlisted shares and to achieve a significant stake in the Company as promoters generally have high ownership percentage with them.

You can use the Stock Knocks website and app to get detailed information on unlisted stocks and hidden gems in India. Just Knock !

Source link: https://www.stockknocks.com/blogs/five-ways-for-trading-unlisted-shares-in-india

[dalanmendonca]

Has India's startup ecosystem arrived?

It's a wonderful time to be in India's startup ecosystem. From the start of this calendar year, India has birthed 12 unicorns. Zomato released its draft red herring prospectus and made it's the IPO decision official. Since 2016, Jio has dropped data prices for 100s of millions of people and made Indians amongst the world's highest data consumers. Thanks to homemade success stories like Flipkart, Paytm, Swiggy, Nykaa and more; young people around the country are using consumer products made by someone just like them. Super-inspiring. Even being a founder carries less stigma than it did 10 years ago.

These are all healthy signs of potentially good times. Yet it's easy to be sceptical. India's startup ecosystem is over-capitalised compared to it's peers. The Indian ecosystem thanks to cultural ties with the US and the alleged TAM of "1 billion+ consumers" is able to draw in capital. Reality remains far more sobering. Zomato is but the rarest of exceptions in going IPO (OK there was EaseMyTrip too, congrats but eww). There are others lined up too, but we'll have to see how many materialise, and more importantly materialise in India. While from an ease of capital raising perspective, it is better to IPO overseas, from a psychological perspective it is better if they IPO locally though I'm not sure if company promoter's care. IPOs are a lagging indicator of system maturity. More troubling, well, is India itself. Douglas Hofstadter describes how software eventually bottoms out at hardware. Our hopes of creating a dynamic new India with a billion consumers are pointless if the economy is flatlining and there are no consumers with disposable income. India is a classic case of premature deindustrialisation despite having a human capital windfall like China. The median age in India is 28 years, young and ready to work but India sadly has completely botched the opportunity to reap its demographic dividend. As the population gets older and the hype of billions of young Indians eager to do new things wears off, this sobering reality will seep into external expectations too. We have lots of young people but they're mostly unskilled, poor, and getting nothing but older. This says nothing about India's failure to invest in and make any meaningful technological progress. We're barely starting to contribute to open-source software, while we need to go full guns blazing into building trains, planes, roads, factories and what not. It was sad that during the US-China trade war when American companies were looking for new locations, the victors were Thailand and Vietnam! Ouch! Neither was India ready, nor did it react fast enough. Oh I don't even want to mention that even China still far short of it's goals of technological independence. Huawei went from the world's largest smartphone manufacturer to (almost) nothing due to the semiconductor ban on them by the US. Insane! And multiple efforts by China to kickstart semiconductor manufacturing by China have mostly failed despite state blessings. India is not even playing the game!

Despite having dedicated far more words to the bear case, I remain hopeful. Just less hopeful than before, and hopeful for a smaller subset of Indians. Life can be full of surprises. I've been impressed by the some consumer product innovation that don't resemble anything found elsewhere, which means someone sat and put their brains together. India's current bubble is EdTech, which is good news. We first focused on E-commerce, but the truth is that we barely had malls and formal commerce. We're a country who buys from Kirana shops (Dukaantech is rage, and hopefully drives efficiencies there. TBD). Education however is our dream and lifeblood and it's good that the market figured out an Indian problem.

[askgopal]

Should Mutual Funds invest in NAT companies?!

Zomato, the first new age tech company (NAT) is hitting the stock markets with a blockbuster IPO, which has attracted lots of attention across various investor segments. One key reason for the investor interest is the company is pretty much visible on the streets and the roads of India, at least in the major cities through their delivery partners who crisscross the cities at any given time delivering hot meal to their customers. Interest is even more high as many have experienced the service through food delivery through Zomato.

During the pandemic days, the duopolic market witnessed brisk orders for both Zomato and Swiggy which saw a surge in the orders due to travel and lockdown restrictions. Zomato, through its IPO has opened floodgates in the new age tech industry, which has a host of companies lining themselves to tap the stock markets. NAT segment is also witnessing some interesting developments. For instance Uber eats sold itself to Zomato in an all stock deal signalling consolidation in the space. Unlike the brick and mortar companies, NAT companies are a lot more different in terms of business model and operating matrix.

Most of these NAT companies burn huge amounts of cash pumped in by global & domestic investors and perennially run on sustained losses for several years in a row. But the interest in them comes from the customer side of the business. Most of these companies have a huge customer database, who are basically the service users, which in turn creates a sweet spot for future M&A deals. Remember, Walmart took over Flipkart on an eye popping deal despite Flipkart’s sustained losses from its operations. The business models widely differ from that of the conventional industries, which makes the investors’ decisions all the more difficult on these companies. In fact, many of the old time investors and other long term players avoid such plays in their portfolios.

Should Mutual Funds invest in NAT companies through various schemes?

Mutual Funds, as we all know, is a platform for the lay investors to take part in various financial markets without much hassles. In particular, the equity markets are always a challenge for the ordinary investors given their time, resource and research constraints. Every industry and sector has its own set of challenges on various parameters required for investment decision. Given the scenario, they benefit the most through the mutual funds route. Mutual funds via various schemes can invest in companies which are appropriate for the investment objectives of such schemes.

NAT companies make attractive investment bets for the mutual funds given the fact that they are going to be the sunrise segment in the stock markets. Zomato is the first, but there are many NAT companies which are lined up to hit the stock markets. Given the unique business model of NAT companies, mutual funds have a definite expertise in analyzing the future prospects through various methods, largely through their experience and quantitative models. Their awareness about the global best practices on valuing such businesses will also come in handy while evaluating NAT companies. On one hand, investing directly in NAT companies may prove risky for the investors as their assessment about the companies may be more on noise and news rather than quantitative analysis.

Such investors can take the route of mutual funds for investing in these companies, given the fact that mutual funds will only have a small pie in such companies in the overall portfolios. While many analysts and seasoned investors are questioning the valuation matrix of NAT companies thereby shooting down the prospects of such firms, mutual funds will take a closer look at these companies for a variety of reasons. Future outlook, business expansion, diverse themes within NAT space, digitization and demographic advantage are some of the best reasons for the mutual funds to actively look at NAT space in the coming days.

The valuation challenges persist in NAT space, but that's all about solving the puzzle over the period like many sectors in the past. That said, mutual funds should apply caution while taking part in such companies given the list of challenges these companies carry on themselves including valuation and profitability. Investors, at least for the time being, should not be excessively euphoric about NAT companies on their own and should go via mutual funds till some clarity emerges in this space.

V Gopalakrishnan

[itsmyuu]

Should Mutual Funds invest in New Age Companies (NAT)?

Zomato, the first new age tech company (NAT) is hitting the stock markets with a blockbuster IPO, which has attracted lots of attention across various investor segments. One key reason for the investor interest is the company is pretty much visible on the streets and the roads of India, at least in the major cities through their delivery partners who crisscross the cities at any given time delivering hot meal to their customers. Interest is even more high as many have experienced the service through food delivery through Zomato. 

During the pandemic days, the duopolic market witnessed brisk orders for both Zomato and Swiggy which saw a surge in the orders due to travel and lockdown restrictions. Zomato, through its IPO has opened floodgates in the new age tech industry, which has a host of companies lining themselves to tap the stock markets. NAT segment is also witnessing some interesting developments. For instance Uber eats sold itself to Zomato in an all stock deal signalling consolidation in the space. Unlike the brick and mortar companies, NAT companies are a lot more different in terms of business model and operating matrix. 

Most of these NAT companies burn huge amounts of cash pumped in by global & domestic investors and perennially run on sustained losses for several years in a row. But the interest in them comes from the customer side of the business. Most of these companies have a huge customer database, who are basically the service users, which in turn creates a sweet spot for future M&A deals. Remember, Walmart took over Flipkart on an eye popping deal despite Flipkart’s sustained losses from its operations. The business models widely differ from that of the conventional industries, which makes the investors’ decisions all the more difficult on these companies. In fact, many of the old time investors and other long term players avoid such plays in their portfolios.

Should Mutual Funds invest in NAT companies through various schemes?

Mutual Funds, as we all know, is a platform for the lay investors to take part in various financial markets without much hassles. In particular, the equity markets are always a challenge for the ordinary investors given their time, resource and research constraints. Every industry and sector has its own set of challenges on various parameters required for investment decision. Given the scenario, they benefit the most through the mutual funds route. Mutual funds via various schemes can invest in companies which are appropriate for the investment objectives of such schemes. 

NAT companies make attractive investment bets for the mutual funds given the fact that they are going to be the sunrise segment in the stock markets. Zomato is the first, but there are many NAT companies which are lined up to hit the stock markets. Given the unique business model of NAT companies, mutual funds have a definite expertise in analyzing the future prospects through various methods, largely through their experience and quantitative models. Their awareness about the global best practices on valuing such businesses will also come in handy while evaluating NAT companies. On one hand, investing directly in NAT companies may prove risky for the investors as their assessment about the companies may be more on noise and news rather than quantitative analysis. 

Such investors can take the route of mutual funds for investing in these companies, given the fact that mutual funds will only have a small pie in such companies in the overall portfolios. While many analysts and seasoned investors are questioning the valuation matrix of NAT companies thereby shooting down the prospects of such firms, mutual funds will take a closer look at these companies for a variety of reasons. Future outlook, business expansion, diverse themes within NAT space, digitization and demographic advantage are some of the best reasons for the mutual funds to actively look at NAT space in the coming days. 

The valuation challenges persist in NAT space, but that's all about solving the puzzle over the period like many sectors in the past. That said, mutual funds should apply caution while taking part in such companies given the list of challenges these companies carry on themselves including valuation and profitability. Investors, at least for the time being, should not be excessively euphoric about NAT companies on their own and should go via mutual funds till some clarity emerges in this space. 

V Gopalakrishnan

[todayworldnews2k21]

Swiggy IPO Set To Launch At Rs 390 Upper Price Band, Aims To Raise $1.35 Bn. Check IPO Date

Swiggy IPO: Swiggy Ltd is set to price its highly anticipated initial public offering (IPO) at Rs 390 at the upper end of the price band, according to sources cited in a Bloomberg report. The food delivery giant, backed by Prosus and SoftBank, will open its IPO for bidding from November 6 to 8, with the goal of raising approximately $1.35 billion (about Rs 11,700 crore). The listing is expected…

[vedantbhoomidigital]

Swiggy IPO will open on November 6, know the main things before applying

Swiggy IPO: Indian online food ordering and delivery platform Swiggy will launch its initial public offering (IPO) next week. The company's IPO will open for subscription on Wednesday next week i.e. 6th November. Let us tell you that this public issue will be open for bidding for three days i.e. till Friday, November 8. Anchor Investors (…)

[odnewsin]

Swiggy IPO: Rs 11,300-cr IPO may open Nov 6; price band at Rs 371-390/share

New Delhi: Food and grocery delivery major Swiggy is looking to raise Rs 11,300 crore through its initial public offering (IPO) opening for public subscription November 6, sources said Monday. The shares would be available at a price band of Rs 371 to Rs 390 apiece. The issue would conclude on November 8 and the bidding for anchor investors will open for a day November 5, they added. Swiggy is…

[askgopal]

Investing in NAT companies - Pros & Cons

Zomato, the first new age tech company (NAT) is hitting the stock markets with a blockbuster IPO, which has attracted lots of attention across various investor segments. One key reason for the investor interest is the company is pretty much visible on the streets and the roads of India, at least in the major cities through their delivery partners who crisscross the cities at any given time delivering hot meal to their customers. Interest is even more high as many have experienced the service through food delivery through Zomato. 

During the pandemic days, the duopolic market witnessed brisk orders for both Zomato and Swiggy which saw a surge in the orders due to travel and lockdown restrictions. Zomato, through its IPO has opened floodgates in the new age tech industry, which has a host of companies lining themselves to tap the stock markets. NAT segment is also witnessing some interesting developments. For instance Uber eats sold itself to Zomato in an all stock deal signalling consolidation in the space. 

Unlike the brick and mortar companies, NAT companies are a lot more different in terms of business model and operating matrix. Most of these NAT companies burn huge amounts of cash pumped in by global & domestic investors and perennially run on sustained losses for several years in a row. But the interest in them comes from the customer side of the business. Most of these companies have a huge customer database, who are basically the service users, which in turn creates a sweet spot for future M&A deals. Remember, Walmart took over Flipkart on an eye popping deal despite Flipkart's sustained losses from its operations. The business models widely differ from that of the conventional industries, which makes the investors' decisions all the more difficult on these companies. In fact, many of the old time investors and other long term players avoid such plays in their portfolios.

So, how should the investors approach the NAT companies?

Pros - 

They are the future - NAT companies are the future. While the conventional industries continue to sustain and operate, the future belongs to NAT companies which target the huge demographic advantage the country provides through a young and working population, which has an ever growing appetite for consumption and spending. Even the financial transactions are becoming more digital. Companies like Zomato and Swiggy will thrive in the coming years as the country moves more towards digitization even in the remotest places across the country. The market is wide and growth oriented given the huge potential the country has in itself. The interest of the foreign investors have also been big time in these NAT companies. Some of the marquee global investors have put their money in these start ups.

Tectonic shift - Tectonic shift in the consumer behaviour & pattern and service delivery will open up the NAT space in this country, like never before. The fast pace of digitization over the last few years have catapulted the valuations of these firms to eye popping levels. For instance, the IPO puts the valuation of Zomato at around $9 billion, making it one of the highly valued companies in the space. More companies will follow suit to unlock their value and that means, the market is going to be highly active and attractive to all kinds of investors. The future is going to be in those highly efficient NAT companies.

More industries to join the bandwagon - Currently there 3-4 areas of interest in the NAT space in this country. The list could expand in the coming years as more and more businesses join the NAT club. The pace of digitization is going to accelerate the trend towards NAT models. And that will certainly create a huge space for NAT companies in the coming years. For instance, there are lots of Fintech companies which are operating and they could potentially grow to bigger and better in the coming years. The space currently is evolving and in the coming years NAT space could well become an important ingredient in the major indexes in the country.

Cons -

Business models are unusually risky - Unlike the conventional companies which have the preference to generate cash flows and profits, most NAT companies run on huge losses and ever growing thirst to burn cash to sustain and expand their operations. This could well be a valuation nightmare compared to the conventional models. For eg., Zomato is currently running on losses, though it has minimized in the last few quarters. Investors should be able to clearly understand the business dynamics of such companies before committing themselves to these companies. Presently the euphoria around the NAT companies are generating huge interests among the investors. But euphoria should not be a deciding factor for such investments.

Exit options for early stage investors (ESI) - Many such companies in the past, more particularly in the other markets have witnessed this trend. IPOs largely serve the purpose for ESIs who get an opportunity to offload their stakes which they acquired several years back on the hopes of better returns. And the current lot of investors are the ones who are going to snap it from those ESIs. Investors have to be extremely cautious while betting on such companies which have a line of investors exiting via IPOs.

Lack of benchmarks for evaluation - NAT being a relatively new segment for the investors, there are no proper benchmarks to evaluate the likely performance and operating matrix of these companies. The usual benchmark matrix followed for the other industries may not be relevant for the simple reason that these companies have unique models beyond common man's comprehension. A lot of caution is thus required before making investment decisions on these companies. Perhaps over the period we might get some benchmarks, but right now this segment is all about euphoria and enthusiasm. 

While many investors in Zomato are angling at listing gains, which means they expect the share prices to zoom past the IPO price, the overall approach must be taken with a long term view. Very little information, particularly on the financials are available in the public domain about NAT companies. Investors can always decide to invest once the listing happens and more clarity emerges on such companies during the course of their business operations. Apply caution while investing in NAT companies!

[vgopalakrishnan]

Investing in NAT companies - Pros & Cons

Zomato, the first new age tech company (NAT) is hitting the stock markets with a blockbuster IPO, which has attracted lots of attention across various investor segments. One key reason for the investor interest is the company is pretty much visible on the streets and the roads of India, at least in the major cities through their delivery partners who crisscross the cities at any given time delivering hot meal to their customers. Interest is even more high as many have experienced the service through food delivery through Zomato.

During the pandemic days, the duopolic market witnessed brisk orders for both Zomato and Swiggy which saw a surge in the orders due to travel and lockdown restrictions. Zomato, through its IPO has opened floodgates in the new age tech industry, which has a host of companies lining themselves to tap the stock markets. NAT segment is also witnessing some interesting developments. For instance Uber eats sold itself to Zomato in an all stock deal signalling consolidation in the space.

Unlike the brick and mortar companies, NAT companies are a lot more different in terms of business model and operating matrix. Most of these NAT companies burn huge amounts of cash pumped in by global & domestic investors and perennially run on sustained losses for several years in a row. But the interest in them comes from the customer side of the business. Most of these companies have a huge customer database, who are basically the service users, which in turn creates a sweet spot for future M&A deals. Remember, Walmart took over Flipkart on an eye popping deal despite Flipkart's sustained losses from its operations. The business models widely differ from that of the conventional industries, which makes the investors' decisions all the more difficult on these companies. In fact, many of the old time investors and other long term players avoid such plays in their portfolios.

So, how should the investors approach the NAT companies?

Pros -

They are the future - NAT companies are the future. While the conventional industries continue to sustain and operate, the future belongs to NAT companies which target the huge demographic advantage the country provides through a young and working population, which has an ever growing appetite for consumption and spending. Even the financial transactions are becoming more digital. Companies like Zomato and Swiggy will thrive in the coming years as the country moves more towards digitization even in the remotest places across the country. The market is wide and growth oriented given the huge potential the country has in itself. The interest of the foreign investors have also been big time in these NAT companies. Some of the marquee global investors have put their money in these start ups.

Tectonic shift - Tectonic shift in the consumer behaviour & pattern and service delivery will open up the NAT space in this country, like never before. The fast pace of digitization over the last few years have catapulted the valuations of these firms to eye popping levels. For instance, the IPO puts the valuation of Zomato at around $9 billion, making it one of the highly valued companies in the space. More companies will follow suit to unlock their value and that means, the market is going to be highly active and attractive to all kinds of investors. The future is going to be in those highly efficient NAT companies.

More industries to join the bandwagon - Currently there 3-4 areas of interest in the NAT space in this country. The list could expand in the coming years as more and more businesses join the NAT club. The pace of digitization is going to accelerate the trend towards NAT models. And that will certainly create a huge space for NAT companies in the coming years. For instance, there are lots of Fintech companies which are operating and they could potentially grow to bigger and better in the coming years. The space currently is evolving and in the coming years NAT space could well become an important ingredient in the major indexes in the country.

Cons -

Business models are unusually risky - Unlike the conventional companies which have the preference to generate cash flows and profits, most NAT companies run on huge losses and ever growing thirst to burn cash to sustain and expand their operations. This could well be a valuation nightmare compared to the conventional models. For eg., Zomato is currently running on losses, though it has minimized in the last few quarters. Investors should be able to clearly understand the business dynamics of such companies before committing themselves to these companies. Presently the euphoria around the NAT companies are generating huge interests among the investors. But euphoria should not be a deciding factor for such investments.

Exit options for early stage investors (ESI) - Many such companies in the past, more particularly in the other markets have witnessed this trend. IPOs largely serve the purpose for ESIs who get an opportunity to offload their stakes which they acquired several years back on the hopes of better returns. And the current lot of investors are the ones who are going to snap it from those ESIs. Investors have to be extremely cautious while betting on such companies which have a line of investors exiting via IPOs.

Lack of benchmarks for evaluation - NAT being a relatively new segment for the investors, there are no proper benchmarks to evaluate the likely performance and operating matrix of these companies. The usual benchmark matrix followed for the other industries may not be relevant for the simple reason that these companies have unique models beyond common man's comprehension. A lot of caution is thus required before making investment decisions on these companies. Perhaps over the period we might get some benchmarks, but right now this segment is all about euphoria and enthusiasm.

While many investors in Zomato are angling at listing gains, which means they expect the share prices to zoom past the IPO price, the overall approach must be taken with a long term view. Very little information, particularly on the financials are available in the public domain about NAT companies. Investors can always decide to invest once the listing happens and more clarity emerges on such companies during the course of their business operations. Apply caution while investing in NAT companies!

[vedantbhoomidigital]

Swiggy's $1.35 billion IPO to launch early next week: Report

Indian food-delivery platform Swiggy Ltd. It is planning to sell its IPO at a price of up to Rs 390 per share, from which approximately $ 1.35 billion can be raised. People having information about this have given this information. The IPO will open for bidding from November 6 and from November 13 (…)