Why is India’s technology IPO boom coming to an end?
A surge in technology IPOs in India is at risk of coming to a halt after several of the country’s most well-known businesses failed to perform well after going public.
According to people familiar with the situation, several prominent tech businesses, including Oyo Hotels and logistics provider Delhivery, are delaying their public debuts and reappraising target valuations.
The two projects, both financed by SoftBank Group Corp., were among the most eagerly anticipated in the country.
Just weeks after closing out a record year for IPOs, India’s booming startup industry faces a reckoning.
Following the disastrous public debut of fintech firm Paytm, as well as the thrashing experienced by newly listed e-commerce companies Zomato Ltd. and Nykaa, investors have soured on new tech offerings.
From New York to London and Hong Kong, IPOs have had a rocky start this year due to expectations of interest rate hikes, geopolitical tensions, and increasing volatility.
In India, the flops have hurt because 2021 was supposed to be the year of the enormous and thriving startup sector. Instead, regulators increased their scrutiny of IPO prospects when investors were duped, contributing to the delays.
According to several of the persons who asked not to be identified because the specifics are secret, the owners of Delhivery have put back their $1 billion IPO to the fiscal year beginning in April.
According to the sources, the stock market regulator frowned on a planned sale of a considerable amount of shares by investors in the IPO; thus, Delhivery is rethinking its listing strategy.
The logistics business, financed by Carlyle Group Inc. and SoftBank, had intended to go public in March.
After filing preliminary IPO filings last year, Oyo came under fire for its ownership structure and significant losses, and it is now facing regulatory problems as well.
The fate of the massive public share sale of state-owned Life Insurance Corp. of India, which filed its draught prospectus over the weekend, looms large over the Indian listings.
The final valuation and investor interest in what’s being nicknamed the “mother of all Indian IPOs” might affect the trajectory of IT businesses’ listing plans
