Paytm and Zomato IPOs Point to Coming Wave of Indian Tech Listings


NEW DELHI — India is gearing up for tech IPOs, including two valued at more than $1 billion, as startups looking to tap into a stock market that has proven resilient in any way. despite Covid-19.

The initial public offerings, bankers said, reflect the maturation of a generation of e-commerce and digital economy companies, many of which have grown rapidly in the past few years. During the pandemic, the city’s well-off people turned to buy products ranging from dairy to medicine.

On July 16, operator of Paytm digital finance app, One97 Communications Ltd., submitted a prospectus on what will be Biggest IPO in IndiaIPO in local currency. The group offers services such as mobile wallets, lending and stock trading, and is backed by Chinese financial technology giant Ant Group Co. Jack Ma’s One97 aims to issue new shares, and existing shares are worth a total of 166 billion rupees, or $2.23 billion.

Other companies considering an IPO include digital payments platform One MobiKwik Systems Ltd., which filed a prospectus earlier this month, and logistics and supply chain services provider Delhivery Pvt ., according to a company spokesman. Online cosmetics seller Nykaa E-Retail Pvt., API Holdings Pvt., parent company of online pharmacy PharmEasy and PB Fintech Pvt., parent company of insurance aggregator Policybazaar.com, are also viewing review the list, according to people familiar with their plans.

Kaustubh Kulkarni, head of investment banking of India at the local unit of

JPMorgan Chase

& Have.

Kulkarni, co-head of investment banking for South and Southeast Asia, said demand for the stock is likely to increase sharply, given the company’s brand recognition. “Most of these companies are providing products, services or capabilities that millions, if not hundreds of millions, of customers are using every day,” he said.

Last week, investors placed orders worth 38 times the number of shares offered by Zomato Ltd., India’s answer to

DoorDash Inc.

The food delivery group has raised about 94 billion rupees, or $1.26 billion, and its shares will begin trading on July 27.

Some market observers say Indian technology has plenty of room to grow, as online consumption grows. Previous-stage investors have poured about $16 billion into Indian startups this year, creating 16 new unicorns – young private companies valued at $1 billion or more – according to the company. Venture Intelligence data company.

As predicted by Gaurav Singhal, head of Indian consumer technology in India, the unicorn population will grow to 150 people by 2025 from 60 years old in 2025.

Bank of America Corp.

investment bank branch. Many stocks will eventually look floating, he said, leading to a massive increase in market capitalization.

“India will see $300 billion to $400 billion in market capitalization created in the internet ecosystem over the next five years,” Singhal said.

The transactions that have been and are being made show how India’s financial sector has been caught up in an international boom, even as the country records more than 30,000 new Covid-19 cases a day , one of the highest daily numbers in the world.

This year, India staged a hasty IPO — joining a global surge fueled in part by technology companies from elsewhere in Asia, such as China’s

Kuaishou Technology

and Korea

Coupang Inc.

Digital finance app operator Paytm has submitted a prospectus for India’s largest IPO in local currency terms.

Image:
Dhiraj Singh / Bloomberg News

India’s 22 IPOs in the first six months of 2021 brought in $3.7 billion, a record half-year run, according to Prime Database Group, a New Delhi-based research firm. Shares of several recently listed companies are trading for more than double the IPO price.

At the same time, Indian stock indexes jumped as investors bet on big listed companies. S&P BSE Sensex has hit a series of record highs, most recently on July 15, and international investors have poured about $7.7 billion into Indian stocks this year, official data shows. see.

Millions of Indian investors trade stocks for the first time reflective trends seen in the United States and several other markets.

Harpreet Singh, 23, from the city of Pathankot, in the north of England, started entering the market last year while waiting for an opportunity to study abroad.

Relying on advice from YouTube and Telegram videos, Mr. Singh said he’s lost money at times – but still finds trading stocks more appealing than getting a job back home, where he says the job in the private sector pay only 10,000 rupees a month. , or about $134.

“If you have stock knowledge,” he says, “in three to four months you can make hundreds of thousands of rupees just sitting at home.”

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