#Zomato IPO report

[altiusinvestech]

Investing in Swiggy Unlisted Shares: Growth Prospects in the Food Tech Industry

One of the leading food tech companies in the country, Swiggy has been known to be a major player in the sector of online food delivery. It had its inception in 2014, and soon after it expanded into quick commerce with offerings like Instamart, which has diversified its revenue streams as well as increased the market footprint. With an upcoming IPO anticipated by the end of the year 2024, the demand for the unlisted shares of Swiggy has surged, making it a popular choice for pre-IPO investors.

Current Financial Performance and Valuation

1) Revenue and Losses

Swiggy reported revenues of Rs 5,476 crore in 2024, reflecting a 58% increase from the previous year. However, its losses remain substantial, at around Rs 1,600 crore in 2024. Despite these losses, Swiggy's valuation reached $14.74 billion as of June 2024, with an IPO target of $15 billion​.

2) Pre-IPO Share Price

Swiggy's unlisted shares have been trading actively, with prices rising from ₹350 to ₹460-₹450 per share amid the IPO buzz. This increase signals investor confidence, driven by the company's growth trajectory and potential market performance post-IPO.

3) Market Dynamics

The food tech industry is witnessing robust growth, with Swiggy capturing 43% of the Indian market. Swiggy’s quick-commerce arm, Instamart, has also become a key driver, positioning the company well against competitors like Blinkit​ and Zomato.

Buy Swiggy Unlisted Shares from Altius Investech!

Prospects of Investment

1) Potential for high returns

The demand for Swiggy's unlisted shares is due to the anticipation of an impressive IPO performance, which is similar to the performance of its competitor Zomato. Early investors stand to benefit greatly in the form of capital gain, especially when the company's valuation matches or exceeds expectations following the listing of Altius Investech.

2) Growth Strategy

Swiggy's expansion into other services than food delivery, including grocery deliveries (Instamart) along with express delivery (Swiggy Genie), has improved their business plan. The diversification approach could assist Swiggy gain a larger market share, increasing its revenue streams, and increasing overall profitability over the long run.

You Can Also Read Our Other Blogs

Zomato vs Swiggy: A Detailed Comparison of India’s Leading Food Delivery Giants

Unveiling Swiggy: A Comprehensive Overview of India’s Prominent Food Delivery Platform

3) Risks to be Considered

Despite its promising growth, Swiggy has yet to gain profitability and this could affect its value post-IPO. The company's cash burn and negative financial bottom line pose serious issues, particularly in a market that is volatile. Investors need to weigh these concerns against potential gains, taking into consideration the potential gains in the short term from the IPO as well as the long-term potential growth

Final Thoughts

Despite the high risks, it could be a very rewarding opportunity to be investing in Swiggy Unlisted Shares, as it is driven by strong market interest, alongside the company’s extended offerings of service. However, prospective investors should consider the ongoing losses of the company too. Additionally, they should also look at the competitive dynamics of the food tech industry.

Thorough due diligence and consideration of personal risk tolerance are important considerations before making investment decisions. If you are keen to explore this investment further, then consulting a financial advisor, and staying updated on Swiggy’s IPO timeline and market developments remain advisable.

[secretstalks]

Rapido financial outlook according to Aravind Sanka

Bengaluru-based mobility startup Rapido has recently made headlines with a significant $200 million funding round, elevating its valuation to $1.1 billion and earning it a spot in the unicorn club. Co-founder and CEO Aravind Sanka has revealed that the company is on the brink of achieving cash-flow positivity, with expectations to become profitable within the next few months.

Rapido's impressive growth is underscored by its vast network of 1.7 million active monthly driver-partners, who collectively manage nearly 0.5 million orders daily across bikes, auto-rickshaws, and four-wheeler cabs. Sanka highlighted Rapido's dominance in the market, claiming a market share exceeding 40% in the two-wheeler and three-wheeler segments, positioning it ahead of competitors like Ola and Uber.

The company reported a substantial increase in revenue for FY23, reaching Rs 497.5 crore compared to Rs 157.9 crore in FY22. Despite this growth, losses also widened, from Rs 439 crore to Rs 674.6 crore, largely due to heavy investments in expansion and development. Notably, Rapido's zero-commission model for drivers continues to be a key differentiator. Drivers pay a fixed monthly fee of Rs 500 for every Rs 10,000 earned on the platform, with Sanka affirming the company's commitment to maintaining this model.

Rapido is now turning its attention to the burgeoning quick commerce sector, aiming to capitalize on the growing demand for rapid delivery services. The company currently supports last-mile food delivery for Swiggy, a major investor in its recent Series D funding round, and collaborates with ONDC. Discussions are underway with quick commerce players like Zepto and Zomato’s Blinkit to explore 10-30-minute delivery options.

The company is also leveraging its extensive fleet to support small direct-to-consumer (D2C) businesses, with plans to partner with logistics firms and work directly with various companies. On the sustainability front, Rapido is making significant strides with electric vehicles. In the NCR region, over 25% of orders are now delivered by electric vehicles, and the company aims to transition all deliveries in Delhi to electric within the next six months. Partnerships with fleet operators to develop exclusive electric vehicle fleets for two-wheelers, three-wheelers, and four-wheelers are also in progress.

Looking ahead, Rapido may consider an initial public offering (IPO) within the next two to three years as a potential step in its growth trajectory. The company's recent fundraising efforts have seen it secure close to $500 million, with WestBridge Capital leading the latest $200 million Series E round, joined by Think Investments, Invus Opportunities, and longstanding partner Nexus Venture Partners.

Ownership of Rapido's parent company, Roppen Transportation Services, as of FY23 includes WestBridge Capital with a 25.6% stake, Swiggy with 15.1%, Nexus Venture Partners with 9.7%, and Integrated Capital with 4.9%. The combined shareholding of co-founders Pavan Guntupalli, Rishikesh SR, and Aravind Sanka stands at 7.5%.

Read More

[optionperks]

Food delivery giant Swiggy targets $15 billion valuation in India IPO

SoftBank-backed Indian food delivery giant Swiggy is targeting a valuation of around $15 billion for its upcoming stock market offering to raise $1-1.2 billion, three people familiar with the matter said.

The deal would make it one of biggest Indian initial public offerings this year. Swiggy competes with Zomato in India's online restaurant and cafe food deliveries sector, and both have made major bets on the new so-called quick commerce boom where groceries and other products are being delivered in 10 minutes.

Swiggy received a shareholder approval in April for an IPO that would raise up to $1.25 billion and its confidential filing is expected to be cleared by the Indian markets regulator within a month or so. Following the approval it will file a public prospectus, according to the people, who declined to be named as the matter is private.The company is targeting a valuation of around $15 billion though the final figure can change, they said.

Swiggy said in response to a Reuters query that it could not comment on "any market speculation". Goldman Sachs said in April quick deliveries accounted for $5 billion, or 45%, of India's $11 billion online grocery market and forecast the segment to reach a 70% share of that market by 2030.

Reuters in June reported that Swiggy was increasingly focusing on its Instamart business.

Swiggy's food delivery business is profitable but grocery delivery Instamart business is still loss making, sources say.

[infinysolution]

IPO Journey in India Through The Decades

India is experiencing a surge in initial public offerings (IPOs). In 2021, the Indian market saw year-on-year growth of 156 percent in IPO activity, as per an Ernst & Young report. This trend has carried into 2022 with the recent LIC IPO seeing record applications. The IPO boom is happening at the same time as a slew of aggressive, youthful first-time investors flood the market. But can we expect further growth or will the end result be unpleasant? Looking to the past may offer some hints.

The curious case of the 90s

There were 6,300 public issues between 1990-91 and 2021-22, which raised over Rs 8.4 lakh crore. However, more than two-thirds of the offerings were made in the first six years (1990-91 to 1995-96) alone. Out of these, the funds generated only accounted for only 4.8 percent of the total funds raised through such offers during the previous three decades. On the other hand, just 5.6 percent of the total issues given in the 30 years were raised in the last six years (between 2016-17 and 2021-22) even though they were high-value issues.

The dissolution of the Capital Controller of Issue (CCI), which had previously been in charge of establishing IPO price, was perhaps the main reason why the 90s saw a glut of issues. This is because the IPO price under the CCI regime was determined by the company’s book value rather than profits. As a result, corporations that issued initial public offerings during the CCI era frequently underpriced their offerings. If the firm in question had a track record of steady earnings growth, this worked to investors’ benefit.

The newly constituted market regulator Securities Exchange Board of India (SEBI) took over the role of CCI, giving corporations the freedom to price their offerings as they saw fit. SEBI was also tasked with reviewing the prospectuses of firms seeking to go public. 448 firms went public that year as a result of the dramatic change in the pricing law, more than triple the number that had gone public the previous year. However, that didn’t mean they were high-quality issues. With the enforcement of laws regarding prospectus and disclosures still thin on the ground, just about anyone who had a business could raise an IPO. Entrepreneurs looking for a quick buck hugely benefited from this scenario while investors always had another IPO on the horizon to make their money back if one turned out to be bust.

The bubble bursts

However, the bad news was around the corner. Towards the turn of the century, it was discovered that the vast majority of the firms that had obtained funds in the previous two or three years were fraudulent. They were termed as ‘vanishing firms,’ as the promoters vanished without a trace, leaving millions of investors with worthless paper in the form of share certificates. Following this, millions of investors left the stock market. For years, the major market for new offerings was dead, and investors even ignored mutual funds. Since the pandemic, however, India’s investor population has risen by around 15 million, after stagnating at 20 million for decades.

The present IPO scenario

A majority of the newfound investor population in India today is comprised of novice investors who have never experienced a significant market fall, let alone a lengthy bear market. The rise and fall of the market in the 90s should serve as a warning to them. The scenario today is resembling the frantic days of the mid-1990s. There are 30 issues going up for subscription every month, on average. Many of these issues are from loss-making businesses such as Zomato. However, since we commonly use their services, they appear familiar and seem like sound investment opportunities when the reality may be something else entirely.

The 1990s were characterized by phony operators pretending to be real businesses. In the 2020s, we are seeing tech start-ups, or ‘unicorns,’—companies that have billion-dollar valuations and enormous operations but no profits—looking to raise public funds and provide private equity investors an escape.

How to navigate the market

India is continuing to rise in prominence as a key emerging market for global investors. While the problems described above plague the market as does IPO underpricing, the increased distribution of information is only likely to get more investors on board. As more investors flood the market, increased investor awareness about how they can protect their money becomes even more important. For instance, new investors may be unaware that their family members were active in the stock market during the 90s boom or even before resulting in the possibility of unclaimed shares lying for them to claim.

There have been a number of documented cases where shares bought by an individual have been lying dormant for years without their family having any idea about it. Their family might even have changed cities, being totally unaware. If these shares lay unclaimed, they are deemed lost. Investors can petition the government to receive the unclaimed dividends and unclaimed shares that belong to them through IEPF recovery.

The team at Infiny Solutions ensures that you always have all the correct information about your shareholdings and any holdings that may be due to you. Our team has access to a vast database and is thus able to identify the rightful claimants of unclaimed shares and unclaimed dividends. We help ensure that you get the money that belongs to you through the claim of shares from IEPF without any risk of being defrauded. So, before you plunge into the newfound IPO boom in India, take some time to explore whether any unclaimed shares belong to you allowing you to avoid the hassle of investing in the current market altogether.

claim of shares from IEPF, IEPF recovery, IPO Journey, IPO Journey in India, IPO Journey India, unclaimed dividends, unclaimed shares

Source Blog :- https://infinysolutions.com/ipo-journey-india-through-decades/

[foxnangelseo]

The Green Energy Sector in India Set to Attract $800 Billion Investments in the Next Decade

Introduction:

Investment in the Indian green energy sector is poised to reach staggering heights, with projections suggesting a potential influx of $800 billion over the next decade. This forecast was presented by Debasish Purohit, co-head of investment banking for Bank of America in India. The energy transition theme, which encompasses various segments such as green hydrogen, storage, and component manufacturing, is expected to draw investments from Indian corporates, foreign strategic investors, and sponsors. The nation's scale makes it an attractive destination for strategic investors aiming to achieve net-zero targets. In this blog post, we will explore the significant investment potential in India's green energy sector and the ambitions of key players in the industry.

Rising Investment Potential:

Bank of America predicts that the renewable energy sector alone will attract approximately $250 billion in investments over the next decade. Additionally, batteries are expected to draw around $250 million in investments while supporting grid infrastructure, and other segments like green hydrogen, equipment, and systems may collectively receive $300 billion in total investment. These substantial figures underscore the immense opportunities present in India's green energy landscape.

Corporate Initiatives:

India's corporate sector has wholeheartedly embraced the green energy revolution, with numerous companies announcing ambitious plans to transition into sustainable practices. Reliance Industries, for example, aims to achieve carbon neutrality by 2035. Goldman Sachs reports that Reliance Industries has invested over $1.5 billion in solar, battery, and hydrogen capacities to offset emissions from its oil and petrochemicals business. The conglomerate has also prioritized the manufacturing of various components, such as polysilicon, wafers, cells, modules, electric vehicles, grid storage batteries, electrolyzers, and fuel cells. Similarly, other prominent conglomerates like the Adani group and the Tatas have outlined their own green energy investment plans, contributing to the sector's growth.

Bank of America's Involvement:

As a significant player in the financial sector, Bank of America has actively advised on several green energy and renewables deals, amounting to over $5 billion. Notable transactions include acting as an advisor to Actis LLP in the $1.6 billion sale of Sprng Energy to Shell and assisting TPG Rise in its $1 billion investment in Tata Motors' electric vehicle business. Over the past year, prominent conglomerates like the Tata Group, Mahindra Group, and the TVS Group have sought to raise capital for their electric vehicle businesses, further highlighting the growing interest and opportunities in the sector.

Market Dynamics and Trends:

In recent weeks, block deals and the primary IPO market have witnessed increased activity across various segments. Bank of America's involvement in advising Tencent on a block trade in Policybazaar and managing other block deals, including in Zomato Ltd, demonstrates the bank's continued presence in the market. The consumer technology segment has experienced a valuation reset, with new private raisings limited to select top-quartile companies. Although absolute valuation levels have been protected, multiples have seen a decline in consumer tech companies. Block deals in the listed space have remained steady, albeit with smaller transaction sizes, indicating sellers' inclination to partially monetize their assets while retaining the potential for future gains in a favorable market environment.

Conclusion:

India's green energy sector is on the cusp of a monumental transformation, with projections indicating the potential for $800 billion in investments over the next decade. The energy transition theme, spanning green hydrogen, storage, and component manufacturing, has attracted the attention of both domestic and foreign investors, given India's scale and potential for achieving net-zero targets. Key players in the corporate sector, including Reliance Industries, the Adani group, and the Tatas, have already announced ambitious plans to foray into green energy. Bank of America's active involvement in facilitating green energy deals highlights the financial sector's recognition of the sector's immense growth potential. With a renewed focus on sustainable practices and increasing investor interest, India is poised to become a global leader in the green energy revolution.

Also visit - Fox&Angel - Strategy consulting firm

This post was originally published on: Foxnangel

[trading-appz]

Why are Mutual Funds on a Buying Spree for Internet Stocks, and Should You be Too?

The blend of the smartphone revolution and cheap data has aided several new investors and traders to participate in the stock market through various share market apps, especially during the lockdown. Moreover, back then, the stock markets were upbeat, with plenty of new-age internet companies launching their initial public offerings (IPOs).

The Initial Brouhaha

Because these internet companies, like Zomato, PayTM, and Nykaa, were already known to the public, investors lapped up their shares, believing these stocks could only go up. This process was further made simple, with the option to easily apply for IPO allotment through share market apps.

Shares Losing Steam

However, the frenzy didn’t last for long. These new-age companies were burning cash and were largely unprofitable. And suddenly, investors were unsure about their growth story and selling their investments. 

Matters have worsened even further with the lock-in periods for various companies, including Nykaa and Delhivery ending in November. Not even the issue of bonus shares could stem the 25% drop in Nykaa’s share price in the last month.

Also, it made sense for the anchor investors to close their positions and book profits, despite a slide in share prices, as they had invested at very cheap valuations. And yet, in November, Indian mutual funds have turned net buyers of new-age technology shares. 

Mutual Funds Investing Chunks of Money in Internet Stocks

Last month, Indian mutual funds (MFs) invested over Rs 2,100 crores in internet companies, such as Delhivery, PayTM, and Nykaa, through block trades. Indeed, despite plummeting 11%, Delhivery recouped its losses as mutual funds pumped over Rs 800 crores in its shares after the lock-in period’s expiry.

But why are Indian MFs still investing in loss-making internet companies?

Holding onto New-age Tech Stocks

Numerous MFs believe that these new-age tech shares are now available at cheap valuations ever since the 50-70% correction in their stock prices from their IPOs listing.

Believing the internet will remain the fastest-growing sector over the next decade, many MFs expect these internet companies to experience exponential growth—25-30% in some cases, over the medium term.

Besides, with many of these new-age companies pivoting to profitability, with some, like Zomato, reporting EBITDA break-even, it appears they have reached a critical mass in their business’ scale and size. 

Another significant factor is that these companies are operating under an oligopolistic structure. To illustrate, today, over 90% of the food tech segment is controlled by Zomato and Swiggy. Similarly, approximately 95% of the digital payments space is dominated by three players, including PayTM.

Empirical evidence suggests that when a particular industry turns oligopolistic, i.e., it has around 2-3 key players, it will have the advantage of pricing power. This price advantage, more often than not, results in improved long-term profitability. 

Finally, being tech-oriented, the fixed costs of these businesses have likely stabilised already. Thus, it is the operating leverage that will determine their fortunes.

For instance, PayTM has acquired over 80 million users, so it has already incurred customer acquisition costs. But by cross-selling diverse products and services to these users, the overall cost of customer acquisition will come down, thus resulting in higher contribution margins.

Conclusion

Hence, it is the play of a plethora of factors that have resulted in MFs picking up new-age tech stocks. Are you convinced of their reasons too? If you are, go ahead and install Angel One’s share market app and start your investing journey today!

[wealthzi]

Zomato Limited, India’s leading online food ordering company, is hitting the markets with its blockbuster ₹9375-crore Initial Public Offering on July 14, 2021. The price band of the IPO has been fixed at ₹72 to ₹ 76 per equity share. Taking part in the IPO may be tempting given the brand’s high visibility. Also, Zomato is India’s first unicorn to hit the capital markets. Let us find more about the much-awaited IPO.

[mohnish-stock-research]

IPO Report- Zomato Limited IPO Want to subscribe for IPOJust Visit- https://swastika.co.in/vplanding Call us -  08770601437, 07556688024 

[latestbreakingnewsupdates]

Target for the public by Zomato Mid-2021: Report

Target for the public by Zomato Mid-2021: Report

[ad_1]

Zomato is preparing to go public. An email to employees overseen by Daily Mint, Zomato founder and CEO Deepinder Goyal, said that the restaurant aggregator and food delivery app was aiming to file and float an IPO (initial public offering) by mid-2021. This comes in the wake of Zomato raising $ 102.5 million (about Rs 750 crore) from New York-headquartered hedge fund Tiger Global…

[newsupdated]

Zomato Aims to Go Public by Mid-2021: Report

Zomato Aims to Go Public by Mid-2021: Report

Zomato is preparing to go public. In an email to employees that has been seen by business daily Mint, Zomato founder and CEO Deepinder Goyal said that the restaurant aggregator and food delivery app was aiming to file and float an IPO (initial public offering) by mid-2021. This comes in the wake of Zomato raising $102.5 million (roughly Rs. 750 crores) from New York-headquartered hedge fund…

[dalanmendonca]

#30DayChallenge Complete!

This post is better read on this Twitter thread.

Preserving the outline here for posterity.

Just finished my #30DayChallenge. Wrote every for morning for 30 minutes and published right away for 30 days straight.

Sharing my pain, process, and learnings from doing this successfully for the first time.

I've been blogging for 12 years now, but my problem has always consistency. I'd say I'm a decent writer. Some of my blog posts get "wows", and the words of encouragement from a friend and strangers. "You should write more" they would say. "Yes" I would reply, but nothing would come after.

Writing has been on my annual goals list since 2014, but I never managed to turn it into habit. There would be fits and start and eventually things would taper off. Life would get it in the way.

My perspective changed when I read "Atomic Habits" last year and encountered the parable of the Photography class

<insert screenshot>

This deeply resonated and also left me like a complete idiot. I was exactly the person focused on quality - reading blogs, books, spewing intellectual jargon but rarely producing output. I had a solid focus on ritual, pages and pages of blog post ideas but extraordinarily little in terms of actual posts written.

I tried to implement it last year too but failed again. Pandemic, first wave lockdowns and challenges at work meant the habit petered out again.

So when the second wave hit, I decided I could divert some time away from my doom-scrolling and attempt this again.

Happy to report that 30 posts, 16K words, 24 hours of writing. The deed is done and the challenge is complete.

Process

Fix a time: I wrote first thing in the morning. I am working full-time and things pop-up. Murphy's' Law! So, getting this out first thing in the morning is a great trick to keep it going. The serenity of the morning works wonders too. But I think you can dedicate time post-work too.

Think small: My goal was "Just write for 30 minutes and publish".

Allow errors: I cared little about typos, links to background context, formatting or anything else. This was not my magnum opus, my goal was just writing consistently and forming a new habit.

Minimize activation energy: I prepared a list of topics when I was starting the challenge. This meant I didn't open my editor and think "Uuhhhhh what do I write about today"?. The topics were ideas I knew about or had mentally munched at least a few times. The ingredients were on the table, I just had to show up and cook.

Choose simple tools: I also wrote straight in Tumblr's editor from where I could hit the publish button and be done. Didn't bother with my typical process of a fancy distraction free markdown editor with immaculate controls, and then pasting that into Tumblr and reformatting and ...

Setup accountability: I would publish and ping a few folks the link right away. This way someone would notice if I missed a day. It triggered conversations and felt intimate. Felt like tweeting would add pressure, so stuck to this.

Learnings

The first thing I (re)discovered was, I loved writing! Writing is such a therapeutic activity. Getting absorbed in the task, hitting a state of flow and putting things on a page was pure fun and joy. I budgeted 30 minutes but wrote for an average of 45. I cannot believe a bad habit formation process kept me from this accessible and enjoyable hobby for decades now.

Quality of posts - I was surprised that many of my posts were pareto good. They were achieving what I would've spent 3-5 hours writing about. Parkinsons Law at work?

Another thing was discovering two kinds of posts - experience and analysis. Writing about my experiences was very well suited to the 30-minute morning dash of flowing emotion. But writing about a more serious topic needed some outline to be in place first. I absolutely cannot (and should not) churn out a "Zomato IPO: Thoughts" in 30 minutes; but I can definitely tackle one part of it.

And that's that!

I plan to continue this habit. Hope you find this useful and inspiring and can skip a decade of failing!

If you want to tag along. Subscribe to my newsletter https://tinyletter.com/dalanmendonca

Posting schedule: Whenever I have something worth sending out. No pressure for me, less inbox clutter for you.

My blog is here https://blog.dalanmendonca.com/ but it is pure unfiltered mixture of occasional brilliance and consistent crap. Follow if you dare.

Cheers!

[jobaaj]

Info Edge FY22, reports multifold growth in profits, on gains from Zomato; Gains 10% Today

 Internet services company Info Edge has reported a multifold growth in profits. The profit reported by the company last year was Rs 278.48 crores. The same grew to Rs 8,922.5 crores in 2022, registering a staggering YoY growth of 3,104%.

 The parent of Naukri, Jeevansaathi, and Shiksha reported massive growth in profits due to an exceptional gain during the quarter. Last year the company had an exceptional loss of Rs 3.22 crores. However, this time the company had an exceptional gain of Rs 9,512 crores.

 During the year, the company had reversed a provision for a diminution of investment of Rs 217.83 crores. Furthermore, the bulk of the exceptional gain was on account of Zomato’s IPO. Info Edge was one of the earliest investors in Zomato and had held 18.6% in the company well before it went public. The company had a profit on the sale of shares of Rs 357.15 crores while Rs 8,941.2 crores were the company’s unrealized market gain.

https://stories.jobaaj.com/info-edge-fy22-reports-multifold-growth-in-profits-on-gains-from-zomato/

Follow https://t.me/jobaajstories for more finance stories/news.

[firstwatercapital]

Nykaa’s Anchor lock-in period ends on December 8? share down by 3.9%

After a bumper month for the primary market, recent listings, including Nykaa’s, may have to face some reckoning in December as the regulatory one-month lock-in period for anchor investors begins to open.

According to an Edelweiss Alternative Research report, 10 IPOs raised over RS 36,000 crore in November, and starting December 8, anchor lock-ins will start to loosen. 

Historically, newly listed companies see selling pressure once the anchor lock-in period ends. For instance, as many as 76 percent of issuances whose lock-in periods are behind this year, experienced selling pressure on the anchor lock-in opening dates. 

The average decline among these stocks, including IRFC, Indigo Paints, Home First Finance, MTAR Tech, Easy Trip Planners and Craftsman Automation, was 2.6 percent, according to the report. And after five days of the anchor opening date, 61 percent of the issues were trading 3.9 percent down on an average.

Of this, Easy Trip Planners and Zomato saw a sharp fall on the day of the lock-in opening of 10 percent and 9 percent, respectively. While the likes of Clean Science and Tech, Devyani International, Ami Organics and others saw about 4-5 percent fall.

 This brings to the fore concerns about how the next batch of stocks will react, starting with Nykaa’s, whose anchor lock-in opens on December 8. Anchor shares make up for about 4.5 percent of total outstanding shares in Nykaa, as per the Edelweiss report.

 Ricky Kirpalani, Lead Sponsor, First Water Capital Fund (AIF), believes the opening up of the lock-in will have a marginal impact on Nykaa’s stock.

 “The reason for this is that most investors look at this as a chance to enter the space without having to come in at IPO level. They tend to have a long-term perspective of the company and are less likely to cash in or flip their investment,” he said.

 Another expert said that anchor investors do not always exit immediately after a lock-in, so as not to put pressure on the stock. Even if they do, it gives other investors an attractive opportunity to invest in the stock.

 “We also believe that those who were looking for an exit partial or otherwise do so at the listing stage. Plus some with larger stakes are more likely to seek negotiated deals,” added Kirpalani.

 Analysts believe the company’s business model is strong and that future growth prospects are intact but rich valuations could play spoilsport for the stock.

 “We believe that it is a fantastic platform and a landmark listing for India Inc. We have a young population and a growing penetration of smart phones and data accessibility. So, websites like Nykaa should hopefully continue to grow, become profitable and one day fulfil its potential,” said Kirpalani.

 “However, for me, companies with fancy multiples which are also loss-making is not something that I would look to invest in. I believe that there are too many assumptions that need to play out to justify its valuation,” he said.

 Similarly, Dolat Capital, in its recent report said Nykaa boasts a rare combination of growth and profitability in the internet space and it will continue to trade at a premium.

 However, it cautioned that current valuations at 19.4/13.7x FY23/24E EV/Sales seem too rich for comfort even after factoring in a long timeframe.

 “In the current valuations, implied expectations leave limited room to err on execution and growth trajectory of the space. The risks of increased competition from some of the large players remain key in our view. Stock supply is another risk,” the note said.

 The research firm has initiated a “sell” with a target price of RS 1,600 at 10x FY24 EV/Sales.

Kirpalani also shared similar concerns. “Will it be able to monetize and not be disrupted or outdated as happens in the tech world?” he questioned.

 IIFL Securities also believes all positives have been factored into the stock.

 The company listed at a premium of 78 percent over its issue price of RS 1,125 on November 10. It then hit a high of RS 2,573 last week but has since fallen to RS 2,141. However, it is still above its listing price of RS 2,001.

 “Nykaa’shas occupied the most profitable customer-product niches, with an average price of RS 450 per item. In our view, it will not want to step too far away from this safehold and hence growth, while remaining robust, would slow down after a few years,” IIFL Securities said in its note.

 “Moreover, a large part of the BPC e-tail space is served by Amazon/Big Basket, which would place Nykaa’s in competition with these players if it steps out of its niche, not to mention increasing competition in the beauty vertical itself,” the brokerage said.

 The other stocks where anchor lock in periods will end this month are Fino Payments Bank, SIS Enterprises, PB Fintech, Sigachi Industries, Paytm, Sapphire Foods, Latent View Analytics, Tarsons Products and Go Fashion.

[jyotifestpost]

Indian startups funds raised $42 bn in 2021, up from $11.5 bn in last year: says report

Indian startups have raised USD 42 billion in 2021, up from USD 11.5 billion in the previous year, a report by Orios Venture Partners said.

The report titled 'The Indian Tech Unicorn Report 2021' said India saw 46 unicorns (companies with USD 1 billion valuations) in 2021 alone, more than doubling the total number of unicorns to 90.

These include ShareChat, Cred, Meesho, Nazara, Moglix, MPL, Grofers (now Blinkit), upGrad, Mamaearth, GlobalBees, Acko, Spinny and others.

India - with 90 unicorns - is the third-largest unicorn hub behind the US (487) and China (301), and ahead of the UK (39).

India has the third-largest startup ecosystem in the world with about 60,000 startups.

"These startups are not only developing innovative solutions and technologies but are generating large-scale employment. Today, one out of 13 unicorns globally was born in India," it said.

As per the report, Bengaluru was the city with the most unicorns. Fintech, e-commerce and SaaS (software as a service) have seen the maximum number of unicorns, while health-tech, ed-tech, D2C, Gaming and Crypto are also close behind.

Flipkart was the most valuable unicorn (USD 37.6 billion after raising USD 3.6 billion in July 2021), while Mensa Brands was the fastest to turn unicorn (took only 6 months to turn unicorn in November 2021 round after raising the first USD 50 million round in May 2021), it added.

India has seen four decacorns (companies with a valuation of USD 10 billion and above) so far - Flipkart, Paytm, Byju's and Oyo Rooms, the report stated.

It said 2021 was a landmark year for Indian startups going public.

"A total of 11 Indian startups (including 8 unicorns) raised about USD 7.16 billion through public offerings...One97 Communication (Paytm) raised India's largest-ever IPO with an issue size of Rs 18,300 crore (about USD 2.46 billion)," it said.

Further, Zomato has the highest market capitalisation (USD 14.8 billion), among the listed Indian startups, followed by Nykaa (USD 13.5 billion) and Freshworks (USD 6.9 billion), the report added.

Despite witnessing an economic downturn in the first half, it has been an exciting and tremendously promising year for tech startups. In terms of measuring scale for the ecosystem, our report is a clear validation of the value creation that has been achieved through technology innovation, both in terms of IPO and unicorns, Rehan Yar Khan, Managing Partner at Orios Venture Partners, said.

The report also noted that 20 per cent of unicorn founders are non-engineers, two-thirds of the Indian unicorns have at least one or more founders from IITs, IIMs or ISB.