More than three dozen technical startups with a combined rating of $ 100 billion will be made public by 2027 in what would mark a rebound in stock sales in India, according to one of the best advisers in the country for internet companies.
Walmart Inc.-controlled online retailer Flipkart, payment company PHONEPE and Lodging Provider Oyo Hotels belong to the companies that wanted to mention in the country, the second largest market in the world for stock sales, but has since lost steam. Most companies that prepare for a first public offer have been able to find a balance between rapid growth and profitability, according to a report from the Homegrown Investment Bank, the Rainmaker Group.
Young companies are now better in shape than in 2021 and 2022, when several startups trying to conquer India’s flourishing capital markets in the Krated after mention in high ratings, said Kashyap Chanchani, Managing Partner at Rainmaker. Payment provider Paytm has fallen around 63% since the IPO, while Beauty Shop Nykaa is falling by 4%.
“The financial health of the startups as a result of the list in the next two years is material better than the companies that mentioned earlier,” said Chanchani, who helped Indian startups to pick up $ 1 billion in equity last year, in an interview. “Two -thirds of these companies are already profitable and they also do better work with transparency.”
Rainmaker’s customers have taken OYO and e-commerce Startup Swiggy, and the company usually receives a reduction in the fundraising deals that helps to arrange it. It does not advise companies on IPOs.
The number of stock sales in India fell by 34% in the first quarter when the stock market sputtered. The Benchmark Nse Nifty 50 -Index had risen for nine consecutive years, but it started to fall at the end of September in the midst of an unexpected delay in economic growth and a number of analysts reduced their expectations for business profits.
The proceeds from the first quarter of IPOs, block selling and share placements in India halves almost to $ 7.1 billion, sliding under those of Hong Kong and Japan.
Nevertheless, Chanchani is under bankers who predict that deals in India will attract in the coming months, when different sales are expected to be on the market. They include the Indian unit of LG Electronics Inc., which can yield no less than $ 1.7 billion, and maker Ather Energy PVT., Which can yield around $ 400 million.
A new increase in IPOs from Startup would offer a much needed exit for large investors such as Softbank Group Corp. and Prosus nv. The Softbank Vision Fund of the billionaire Masayoshi Son is a shareholder in companies such as Oyo, Optician Lenskart Solutions PVT., And used car seller Cars24 Solutions PVT., Although Prosus is an investor in e-commerce company Meesho and home services.
Companies such as Softbank and Prosus “have a dozen companies or something where they are on a big profit, and several of these companies have started looking for the route of the public markets,” said Chanchani, but warning that IPOs should be carefully priced because retail investors will demolish high valuations.
Companies that become public will have to mitigate the concern of investors about a delaying economy and profit growth. Some of the newly stated shares of India have also decreased after the sales restrictions have elapsed, so that pressure was added to a stock market that has fallen hundreds of billions of dollars since the end of last year.
The startup economy of India remains the largest in the world after the US and China. Yet there is also one that has seen great corporate governance fall, zinc ratings and profit that turns into dust. Many young companies are forced to reduce jobs and growth plans, while others have implied. The online tutoring activities of teachers and entrepreneurs by Ju Raveentran illustrates how a once high -flying company can run on the ground if investors lose confidence in founders who were once charismatically noticed.
“One of the most important questions that investors often ask us is – can we trust the founders?” Said Chanchani.
(Except for the headline, this story was not edited by NDTV staff and has been published from a syndicated feed.)
