IPO frenzy erupts, startups postpone listing plans

- After the roaring listing of startups like Paytm, Zomato, Nayaka, a sharp fall in the stock caused huge losses to investors.

- Correction started in the last month of the year 2021, which was encouraging with the record IPO, intensified in the year 206.

Listed e-commerce companies that used to lure investors with bumper listings are now a cause for concern. This is because the recent correction in the stock market has led to a massive erosion in the shares of e-commerce companies, raising doubts about how safe the investment in such new-age companies is and how strong its roots are. As a result, other e-commerce companies in Thanga have postponed or postponed their listing plans to bring in an IPO. Such startups include leading technology companies including cab service provider Oyo, logistics firm Delivery.

The correction that started in the last month of 2021, which was encouraging at the time of record IPO, is intensifying in the year 203. Attracted by the encouraging listings of Nayaka and Zometa, many startups were planning to bring in IPOs and raise huge sums of money from gullible investors. However, the delay has been due to changes being made by IPO aspiring companies after investors felt like they were being 'milked'.

According to market analysts, investors are no longer interested in local startups, they want profitability and returns, not just 'moonlight in the palm of the hand' futures trading.

Delivery, which plans to launch an IPO in December, has postponed its public issue after Paytm's listing scandal. The company is currently reviewing its IPO plan. Similarly, cab service provider Oyo is also facing regulatory issues. The company is currently under investigation due to ownership structures and massive losses after applying for an IPO. Zostel Hospitality is the biggest obstacle in the way of Oyo's IPO which has claimed its stake in the company's IPO. Oyo's ઓ 1.5 billion IPO is awaiting SEBI approval. Its investors include Softbank, including Sequoia Capital and Lightspeed Venture Partners. The company is deliberately delaying the listing plan as it wants more time to respond to the director's question. Pharmaceutical, a company that sells online pharma products, is also involved in the listing race. In addition, Druva Inc., InMoby PTE and Pine Labs have also postponed their listing plans until the second half of 203 or later.

IPO of startups is an exit opportunity for global investors ...

The Ghodapur of IPOs of startups in India in the year 2021 reflects the opportunity for global investors to exit by tying the knot. One2Communication, also known as Paytm, launched an IPO in November to raise Rs. 15,200 crore, the largest public issue of the Indian stock market so far. However, after the end of the lock-in period, so-called anchor investors, the so-called big institutional investors, are selling at a higher price. The recent correction in technology stocks has also raised concerns globally.

Startups should beware before LIC's mega IPO ...

State-owned Life Insurance Corporation of India (LIC) has filed an application for an IPO with SEBI. LIC's public issue is considered to be the 'Mother of All IPOs in India', the largest IPO in the Indian stock market. The final valuation of this mega IPO and the interest of investors could determine the path of the technology company's listing scheme. Market analysts say that after two years of 'rocket boom', investors' worries about IPOs have intensified. Last year, the stock market was booming and volatile. Investors are currently adopting a 'wait and see' policy.