#Zomato IPO share

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Zomato IPO, Share allotment, GMP and listing date

Zomato IPO GMP

Zomato IPO GMP First sale of stock, was oversubscribed in excess of multiple times on the last day of the contribution which was driven by serious areas of strength for a from the Qatar Islamic Bank and retail class.

It was opened from 14 to 16 July. On the third day which was additionally the day of Zomato Initial public offering, It got offers for 29.04 billion offers for an underlying public with a contribution size of 719.23 million.

The QIB-Qualified Institutional Purchaser class was bought in multiple times, and the Retail classification was bought in multiple times. Non-institutional financial backers are 34.80 times higher than workers, 62%.

As per market spectators, Zomato's Dark Market Premium (GMP) has chipped away at everything considered in the ₹16-18 domain. The dim market is an informal stage, where exchanging begins after the statement of the Initial public offering cost range until the Initial public offering shares are recorded.

The issue comprises of a Rs 375 million proposal to sell by the organization's most memorable financial backer, Data Edge, and a new ₹9000 crore issue. Interface Intime India Pvt Ltd. is the enlistment center for Zomato's Initial public offering and in light of the business share allotment which is probably going to be finished on Thursday i.e, July 22, Zomato shares are presumably going to be recorded multi week from now i.e July 27 on the Public Stock Trade (NSE) and the Bombay Stock Trade (BSE).)

Zomato raised ₹ 4,196 crores from a few conspicuous institutional financial backers as a component of the anchor book portion. It has apportioned 552.17 million value offers to moor financial backers for Rs 76 for each offer. The state run administrations of a few nations like Singapore, Blackrock, Goldman Sachs, and Abu Dhabi Venture Authority are a portion of the financial backers who took part in the primary book.

The outcome of Zomato IPO GMP could lean toward impending public contributions for New Age organizations like Paytm, Mobikwik, and Strategy Market. Organizations like Paytm and Mobikwik have as of late recorded their draft archives with market controllers like SEBI, Nykaa, PolicyBazaar, and others are additionally anticipated to do unexpectedly early.

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Swiggy IPO: All You Need to Know, Impact on Zomato Shares

Food and grocery delivery major Swiggy has filed its updated draft papers with markets regulator Sebi to raise funds through its much-anticipated Rs 10,000-crore IPO. The updated draft filing comes after Swiggy’s confidential offer document was approved by Sebi earlier this week. Swiggy IPO Size The proposed IPO comprises a fresh issue of equity shares worth Rs 3,750 crore and an offer-for-sale…

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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%.

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Zomato Share Price: Investors Wealth Increased by 55% in Stock Market

Zomato Share Price Increased: Zomato Ltd. is making headlines in the stock market today, with its shares jumping by 5.58%, closing at ₹256.40. The stock opened at ₹248.05 and peaked at ₹261.60, sparking curiosity among investors. But what’s fueling this surge? Over the past five days, Zomato shares have risen by 2.67%, with an even more impressive 54.78% growth in the last six months—adding ₹90.85 to its value. Investors are asking, what’s driving this rapid growth? Zomato, launched in 2010, is more than just a food delivery service. It’s a comprehensive technology platform connecting customers, restaurant partners, and delivery personnel, helping users find restaurants, order food, and read reviews. The company’s ability to innovate in a competitive market and expand its user base has been key to its success. As of September 2024, Zomato ranks as the 784th most valuable company globally, boasting a market cap of ₹2.112 trillion. This impressive ranking highlights its growing influence, particularly in the food tech space. With its share price continuing to climb, Zomato's stock has captured the market’s attention. Could this be the beginning of an even greater rise, or will the momentum waver in stock market? Investors are watching closely as Zomato solidifies its position as a major player in the global market. Zomato entered the National Stock Exchange (NSE) of India on July 23, 2021, when it listed its initial public offering (IPO). Zomato is also listed on the Bombay Stock Exchange (BSE). Zomato's IPO was priced between Rs 72 and Rs 76, with a cutoff price of Rs 76. Read the full article

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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.

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Boom to Correction: Understanding the Fluctuations in Zomato's Share Price zomato share price analysis

 Introduction

Zomato, share price analysis India's leading on line food ordering and shipping platform, has captured the imagination of investors and clients alike. The agency's percentage price has been on a rollercoaster ride, experiencing extensive volatility.

The IPO and Initial Surge

Zomato stock performance IPO changed into a exceedingly anticipated event, with the problem oversubscribed via a huge margin. The inventory debuted at a top rate over its trouble fee, igniting investor enthusiasm. The company's strong logo popularity, huge user base, and potential for increase inside the burgeoning online meals transport marketplace contributed to the initial surge in its share fee

However, the euphoria soon diminished as investors began to attention on the corporation's financials. It is  like many different tech startups, turned into working in a especially aggressive marketplace with razor-skinny margins. The organization's direction to profitability seemed uncertain, main to issues among traders.

Factors Affecting Zomato's Share Price

Several factors have influenced Zomato's proportion fee:

Financial Performance

It is economic performance, specially its revenue boom, profitability, and coins burn, has been closely watched by way of buyers. While the agency has proven dazzling revenue increase, it has additionally incurred widespread losses. Any improvement in profitability or discount in cash burn is likely to definitely effect the percentage charge.

Competition

The severe opposition in the online meals transport marketplace, with gamers like Swiggy and Uber Eats, has placed pressure on Zomato's margins and marketplace percentage. Any adjustments within the competitive panorama can notably effect the employer's stock price.

Expansion Plans:

It is  enlargement plans, both geographically and into new commercial enterprise segments, have been intently monitored by way of buyers. Successful enlargement projects can boost investor confidence, even as setbacks can negatively effect the percentage price.

Investor Sentiment

Overall investor sentiment towards the tech region and the wider marketplace situations have additionally performed a function in Zomato's share rate movement. Periods of marketplace optimism tend to advantage the inventory, whilst bearish sentiment can result in selling strain.

Regulatory Environment

Changes in government rules associated with the food transport enterprise can effect  with operations and profitability. Any favorable or detrimental regulatory tendencies can impact the share charge.

Zomato's Business Model and Challenges

It is middle commercial enterprise version revolves around connecting clients with restaurants via its platform. The organization generates sales mainly from commissions on meals orders, advertising and marketing, and subscription fees. However, the agency faces several demanding situations, together with:

High Competition:

 The excessive competition within the food transport marketplace has caused charge wars and reductions, putting pressure on margins.

Unit Economics

Achieving profitability at the unit level stays a mission for Zomato, as the value of obtaining and keeping customers is excessive.

Dependency on Delivery Partners

It is based closely on shipping partners, and any issues related to their availability or pricing can effect operations.

Regulatory Risks

The food delivery industry is subject to various regulations, and changes in these regulations can impact business.

Outlook for Zomato

The destiny of Zomato's percentage rate relies upon on numerous elements, such as its ability to acquire profitability, manage competition, and execute its enlargement plans successfully. Factors affecting zomato share price .While the company faces demanding situations, it also has substantial increase opportunities in a hastily growing marketplace.

Investors must carefully evaluate of economic performance, aggressive function, and strategic path before making any investment selections. The organisation's ability to navigate the demanding situations and capitalize at the possibilities may be important for its long-time period achievement.

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Unlocking the Potential of Capital Gain Ventures

In the dynamic world of startups and innovation, capital gain ventures have emerged as a powerful investment strategy. By focusing on early-stage companies with high growth potential, investors can achieve significant financial returns. This blog explores the role of venture capital in capital gain ventures, highlights leading venture capital firms in India, and explains the different types of venture capital available to startups and investors.

What Are Capital Gain Ventures?

Capital gain ventures involve investing in startups and emerging businesses with the goal of realizing substantial capital gains when these companies grow and succeed. The strategy is to invest early, support the company's growth, and exit at a higher valuation, typically through acquisitions or IPOs.

Why Are They Important?

High Return Potential: Early investment in high-potential startups can lead to significant financial returns.

Economic Growth: By supporting innovative businesses, venture capital drives economic growth and job creation.

Innovation Catalyst: Venture capital funding fuels innovation, allowing startups to develop new products and technologies.

Venture Capital in India: A Thriving Ecosystem

India has become a global hotspot for venture capital investment. With a rapidly growing economy, a young and tech-savvy population, and a flourishing startup ecosystem, India offers immense opportunities for venture capital firms.

Key Trends in Indian Venture Capital:

Tech Boom: Investment in technology sectors, including fintech, e-commerce, and AI, is surging.

Increased Deal Sizes: The average deal size has grown as startups scale and seek more substantial funding rounds.

Diverse Sectors: While tech dominates, there is rising interest in sectors like healthcare, edtech, and clean energy.

Leading Venture Capital Firms in India

Sequoia Capital India: Known for its investments in companies like Zomato, Byju's, and Ola.

Accel Partners: Early investors in Flipkart and Swiggy, focusing on tech startups.

Nexus Venture Partners: Backed companies like Unacademy and Delhivery, supporting both early and growth-stage startups.

Matrix Partners India: Invested in Razorpay and Ola Electric, with a focus on early-stage tech companies.

SAIF Partners (Elevation Capital): Known for investments in Paytm and UrbanClap, supporting companies across various stages.

Types of Venture Capital

Understanding the different types of venture capital is crucial for both investors and startups. Each type of capital serves a specific purpose and aligns with different stages of a company’s growth.

1. Seed Capital

Purpose: Provides initial funding to turn an idea into a viable product.

Stage: Early concept or prototype phase.

Impact: Helps startups refine their business model and prepare for market entry.

2. Early-Stage Capital

Purpose: Financing for product development and initial market launch.

Stage: Early operations, typically pre-revenue or early revenue.

Impact: Supports startups in scaling operations, building teams, and launching products.

3. Growth Capital

Purpose: Funding for scaling, market expansion, and operational growth.

Stage: Established businesses with proven revenue models and growth potential.

Impact: Enables startups to expand their operations, increase market share, and drive significant revenue growth.

4. Late-Stage Capital

Purpose: Capital for mature companies preparing for an IPO or acquisition.

Stage: Well-established businesses with significant market presence and approaching profitability.

Impact: Supports companies in maximizing their market valuation and preparing for successful exits.

Benefits of Capital Gain Ventures

Investing in capital gain ventures offers several advantages:

Access to High-Growth Opportunities: Investors gain exposure to innovative startups with high growth potential.

Portfolio Diversification: Venture capital investments can diversify an investor’s portfolio, reducing risk and enhancing returns.

Active Involvement: Venture capitalists often play an active role in guiding startups, providing strategic advice, and leveraging their networks.

Challenges and Considerations

While capital gain ventures offer significant opportunities, they also come with challenges:

High Risk: Investing in early-stage startups can be risky, with the potential for loss if the business fails.

Long Investment Horizon: Returns on venture capital investments may take several years to materialize.

Market Dynamics: The success of venture capital investments can be influenced by market trends, regulatory changes, and economic conditions.

Conclusion

Capital gain ventures represent a powerful avenue for achieving substantial financial returns through strategic investments in high-growth startups. In India, the venture capital landscape is thriving, with a rich ecosystem of startups and investors driving innovation and economic growth.

Whether you are an entrepreneur seeking funding or an investor looking for high-potential opportunities, understanding the different types of venture capital and the trends in the market is crucial. By leveraging the expertise of leading venture capital firms, you can navigate the complexities of capital gain ventures and unlock significant value.

For more insights and support on venture capital and capital gain ventures, explore our services at Sigma Consultants. Join us in shaping the future of venture capital and driving the success of tomorrow’s innovators.

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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/

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Zomato Fundamental Analysis, Share News & Events

Zomato जैसी कंपनी का उद्यमी स्वरुप और वित्तीय प्रदर्शन का विश्लेषण करते हुए, यह ब्लॉग Zomato के IPO उत्साह से लेकर उसके भविष्य की संभावनाओं तक की एक यात्रा प्रस्तुत करता है। IPO के बाद अस्थिरता, Zomato के विभिन्न व्यावसायिक सेगमेंटों के प्रकार, उनके बिजनेस मॉडल की महत्वपूर्ण विशेषताएं, लाभप्रदता और विकास के अंक, और भविष्य की योजनाओं के बारे में चर्चा करता है। Zomato के उद्यमी द्वारा दिखाया गया उत्साह और प्रेरणादायक कहानी, तकनीकी पारिस्थितिकी तंत्र के विकास में एक नमूना प्रस्तुत करता है।

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Analyzing Ola Share Price: Factors Influencing Its Growth and Potential Future

Introduction to Ola Share Price

Ola, a well-known name in the ride-sharing industry, has been making headlines not only for its innovative services but also for its share price performance in the stock market. As of my last knowledge update in September 2021, Ola was preparing for its initial public offering (IPO), which generated significant interest among investors and the public alike. In this article, we will delve into Ola share price, exploring the factors influencing its growth and discussing its potential future prospects.

The Ola Story

Ola, founded in 2010 by Bhavish Aggarwal and Ankit Bhati, has emerged as one of India's leading ride-sharing platforms. Over the years, the company has expanded its services to include not only traditional cab services but also auto-rickshaws, two-wheelers, electric vehicles (EVs), and even food delivery through Ola Foods. This diversification has allowed Ola to become a comprehensive mobility platform, giving it a strong competitive edge.

The IPO Buzz

In 2021, Ola announced its plans to go public through an IPO. The IPO market in India has been quite active, with several technology companies, including Zomato, getting listed successfully. The buzz around Ola IPO was significant, as it was expected to be one of the largest tech IPOs in India, drawing attention from both institutional and retail investors.

Factors Influencing Ola's Share Price

   a. Market Sentiment: Like all publicly traded companies, Ola's share price is influenced by market sentiment. Positive news, strong financial performance, and investor confidence can drive the share price up, while negative developments or economic uncertainties can have the opposite effect.

   b. Competition: Ola operates in a fiercely competitive market, with rivals like Uber and various local players. The company's ability to maintain or expand its market share in the face of competition can significantly impact its share price.

   c. Regulatory Environment: Ride-sharing companies are subject to various regulations in different regions. Changes in regulations can affect Ola's operations and, consequently, its share price. Investors closely monitor the company's ability to navigate regulatory challenges.

   d. Financial Performance: Ola's financial performance is a critical factor in determining its share price. Key metrics such as revenue growth, profitability, and cash flow play a pivotal role in shaping investor perceptions.

   e. Innovation and Diversification: Ola's ability to innovate and diversify its services can drive investor confidence. Initiatives like Ola Electric, which focuses on electric mobility, can be a significant catalyst for share price growth.

The Impact of COVID-19

The COVID-19 pandemic posed significant challenges for the ride-sharing industry as people reduced their travel and opted for safer transportation options. Ola, like its competitors, faced a dip in demand during the pandemic. However, the company also adapted by introducing safety measures and expanding its delivery services to offset some of the losses incurred in its core ride-sharing business.

Ola's Commitment to Electric Mobility

One of the exciting developments at Ola is its commitment to electric mobility. Ola Electric, a subsidiary of Ola, aims to promote the use of electric vehicles in India. As the world shifts towards sustainable transportation, Ola's focus on electric vehicles can position it favorably in the eyes of environmentally conscious investors.

Potential Future Prospects

   a. EV Revolution: As the adoption of electric vehicles accelerates, Ola's investment in electric mobility can pay off handsomely. If Ola Electric succeeds in establishing itself as a leader in the EV space, it could drive significant share price growth.

   b. International Expansion: Ola has ambitions beyond India. Expanding into international markets could open up new revenue streams and potentially lead to a more favorable valuation in the stock market.

   c. Profitability: Like many tech startups, Ola has focused on growth over profitability. Investors will be keenly watching its path to profitability, as sustained losses can put downward pressure on the share price.

   d. Regulatory Clarity: Clarity on regulatory issues, especially in key markets, will be crucial for Ola's future growth. Positive regulatory developments can boost investor confidence.

Conclusion

Ola share price is subject to a multitude of factors, ranging from market sentiment to regulatory changes and financial performance. As of my last update in September 2021, Ola was gearing up for its IPO, and its share price was eagerly anticipated by investors. However, it's important to note that the stock market is inherently volatile, and share prices can fluctuate rapidly in response to news and events.

Investors considering Ola as a potential investment should conduct thorough research, stay informed about the latest developments, and assess the company's long-term prospects. Ola's commitment to electric mobility and diversification into various services make it an intriguing player in the mobility sector with the potential for significant growth, but like all investments, it comes with its own set of risks.

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Investment Banking

In the opinion of the Economic Times, “In 2021, investment banks of India make a record by earning Rs.2200 crore. The same year, investment bankers piled Rs. 776.7 crores in share sale fees. This share sale fee was three times more than the previous year. The year 2021 was pleasing for tech companies like Zomato and Paytm. They had more IPOs than in the year 2020. As a result, bankers’ fees increased. In 2021, acquisition banks made a lot of money by underwriting. At that time, many companies went public, due to which IPOs increased. The reason behind it was to raise capital or give investors withdrawal opportunities.

[stocks808]

Changing landscape of the Indian stock market

The Indian stock market has undergone significant changes in recent years. The market has evolved to become more inclusive and dynamic, with new investment options and opportunities for investors. In this blog, we will explore the changing landscape of the Indian stock market, and what it means for investors.

Introduction The Indian stock market has come a long way since its inception in the 19th century. The market has grown from a small trading platform to a bustling marketplace with millions of investors, thousands of listed companies, and billions of dollars in daily trading volume. The market has been subject to many changes over the years, but none have been as transformative as those witnessed in recent years.

Dematerialization of shares One of the most significant changes in the Indian stock market is the dematerialization of shares. Earlier, shares were issued in physical form, which made them difficult to transfer and track. In 1996, the National Securities Depository Limited (NSDL) was established to hold shares in electronic form. This made it easier to transfer and track shares, and eliminated the need for physical certificates. Today, almost all shares in India are held in dematerialized form.

Online trading The advent of the internet has revolutionized the Indian stock market. Online trading has made it possible for investors to buy and sell shares from the comfort of their homes or offices. Online trading has also made it easier for small investors to participate in the market, as they no longer need to physically visit a broker or exchange to make a trade.

Derivatives trading has been a game-changer for the Indian stock market. Derivatives such as futures and options allow investors to take positions on the future price movements of stocks. This has created new opportunities for investors but also increased the risk in the market. The introduction of derivatives trading has also made the Indian stock market more attractive to foreign investors.

IPOs and secondary offerings The Indian stock market has witnessed a surge in IPOs and secondary offerings in recent years. A growing number of companies are choosing to go public in India, which has created new investment opportunities for investors. The success of companies such as Zomato, Paytm, and others in recent IPOs has boosted investor sentiment in the market.

Regulatory changes The Securities and Exchange Board of India (SEBI) has played a crucial role in transforming the Indian stock market. SEBI has introduced a number of regulatory changes to improve transparency, protect investor interests, and promote market development. Recent regulatory changes include the introduction of minimum public shareholding norms, stricter disclosure norms for listed companies, and the introduction of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)

Conclusion The Indian stock market has come a long way in recent years, and it continues to evolve. The market has become more dynamic, inclusive, and attractive to investors. The changes witnessed in recent years have created new investment opportunities and risks, and it is important for investors to stay informed and make informed decisions. The Indian stock market has a bright future, and investors can expect to see continued growth and evolution in the future

By: Sarthak Batra

Founder: Stocks808

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Another IPO Offering Snaps Out in 2022

The Snapdeal IPO has joined the long list of all the initial public offerings (IPOs) that have been shelved in 2022 amid growing concerns over poor market sentiments. The company had plans to raise over $152 million through its IPO.

The IPOs Year of 2022

Against Rs 1.22 lakh crores raised in 2021, 2022 has exhibited a dismal performance with companies managing to solicit only Rs 55,472 crores, which is a 54% Y-o-Y decline. While the Indian securities markets did see their biggest issue ever of Rs. 21,008 crores of LIC IPO, these shares were listed at an over 8% discount and have been on a decline ever since.

Some of the new IPO listed companies include Delhivery and Ruchi Soya, which launched their offerings for Rs. 5,235 and Rs. 4,300 crores respectively. However, the top performers in terms of oversubscriptions among the newly IPO listed companies were Dreamfolks Services, Electronics Mart India, Campus Activewear, Harsha Engineers International, and DCX Systems.

Furthermore, multi-bagging green shoots were shown by stocks like Adani Wilmar, Veranda Learning Solutions, and Venus Pipes & Tubes post-listing. And yet, several companies decided to pull the plug on their IPO plans, including Snapdeal and Droom.

Snapdeal Bows Out

Softbank-backed e-commerce-based Snapdeal is the newest casualty of the tech stocks’ meltdown. It has withdrawn its IPO prospectus from SEBI, which it submitted back in December 2021 over concerns of fizzling tech valuations.

Competing against Amazon and Flipkart, Snapdeal has seen its popularity nosedive, which is reflected in its burgeoning losses over the past three financial years (2019-2021). Initially valued at $6.5 billion in 2016, Snapdeal had plans to list on the stock exchange through an IPO that valued it at $1 billion only.

It is believed that Snapdeal shelved its plans on the back of poor performance shown by other newly listed IPO companies, including Paytm, Nykaa, and Zomato—the shares considered the poster boys of India’s evolving startup ecosystem. Zomato has more than halved since its all-time high price, while Paytm has lost almost 80% since its listing.

In addition to Snapdeal, several other startups, namely PharmEasy, boAT Lifestyle, and Droom have pulled the plug on their IPOs on the back of growing recessionary fears. The Russia-Ukraine war, Fed’s and RBI’s monetary tightening, and tech layoffs have worsened the market conditions.

It is unclear whether Snapdeal has any plans of refiling its IPO.

2023’s IPO Outlook

So, will this trend continue in 2023 as well? Not so, as per some experts. In fact, over 55 companies, such as Aadhar Housing Finance, Yatra Online, Fab India, Utkarsha Small Finance Bank, and TVS Supply Chain Solutions, have already received approval from SEBI to list on the stock exchange. In fact, Sah Polymers’ subscription is due to end on 4th January 2023 and is set to post it.

Moreover, with more and more retail investors taking to the securities market, it is believed that the IPO train will be driven by domestic institutional and retail capital, as opposed to FIIs. This is, of course, subject to IPOs being launched at reasonable valuations, which leave some room for growth for new investors.

[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!