MUMBAI: Valuations of several new-age companies have fallen in the unlisted stock market as enthusiasm for startups has waned, potentially delaying their IPO plans.
According to people operating in the unlisted stock market, PharmaEasy, Oyo, Boat and Xigo have seen sharp falls in value over the past six months.
This can discourage promoters and private equity investors from publicly issuing shares. poor stock market performance
He said that after Policybazaar’s IPO, investor opinion will also be affected.
Rahul Thalia, Director, Sarafin Financial Advisors said: “Domestic investors have recognized that there is very little room for upside in share prices when there is a private equity exit from a stock. “Whether (PolicyBazaar) or Paytm, they have shown that high-priced companies quickly lose favor with investors; Higher ratings are unsustainable in the long run. Now investors have returned to companies like NSE (National Stock Exchange) or CSK (Chennai Super Kings) where they see more value.
PharmEasy (API Holdings) unlisted shares are trading around Rs.45 while shares were higher at Rs.145 on the day’s gain on the listing. IIFL had bought a large chunk of the shares at Rs 53 last November and sold the entire stake at Rs 82.
Imagine Marketing Ltd, which owns the Boat brand, has seen its valuation fall sharply since the company’s proposed share sale was discussed. Shares that were trading at Rs 1,250 a few months ago are now trading at Rs 850-900 per share.
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Oyo, which peaked at 130 rupees six months ago, is now trading at 90-95 rupees.
“Fancy startup stocks have clearly lost their luster due to the delay in IPO plans,” said Tushar Bopche, co-founder of InvestValue Fintech.
“If you have excess funds, investors can still hold onto their acquisitions and wait for another round of share price gains once the IPO market resumes,” he added. : “Some stocks have even corrected in the 30-50% range since the IPO roadshow is at its peak.
Shares in travel portal Ixigo appear to have been lost in transit as they are changing hands for around 180 rupees, compared to 220-230 rupees earlier.
Investment bankers said these valuations reflect a turnaround in new-age companies that are popular in broader stock markets.
Paytm shares closed at 655.35 on Tuesday, compared to the IPO price of 2,150 rupees in November last year.
PB Fintech is now trading at Rs 584. The shares were sold for Rs 980 at the IPO last November.
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