Representational image | Photo: Dhiraj Singh | Bloomberg
Representational image | Photo: Dhiraj Singh | Bloomberg
Text Size:

Bengaluru: At least a dozen Indian companies working on initial public offerings are now under extra investor scrutiny following the disastrous debut of digital payments startup Paytm, the country’s biggest ever IPO.

Offerings on the radar include that of Oravel Stays Ltd., the operator of hotel-booking startup Oyo, which is looking to raise nearly $1 billion. Other sizable listings include API Holdings Ltd., the parent of online pharmacy PharmEasy, and logistics company Delhivery Ltd.

Planned smaller IPOs could have a harder time pricing shares if there is a reduced appetite for new listings. The shares of Paytm rival One MobiKwik Systems Ltd. have fallen about 40% in the so-called grey market.

Paytm shares have fallen about 30% since it started trading last week, with a rebound on Tuesday not enough to erase losses from the two previous sessions. Some companies that were seeking to benefit from the flood of transactions in India’s booming IPO market so far this year may now rethink the timing and pricing of their issues, according to Edelweiss Financial Services Ltd.

Valuation is likely to become the main sticking point for those seeking to tap the market. Paytm’s valuation — around 26 times price-to-estimated sales for the financial year 2023 — towers above the benchmark S&P BSE Sensex Index on about 4 times.-Bloomberg

Disclosure: Paytm founder Vijay Shekhar Sharma is among the distinguished founder-investors of ThePrint. Please click here for details on investors.


Also read: Paytm CEO’s fixation on delivering record IPO led to first-day flop


 

Subscribe to our channels on YouTube & Telegram

Why news media is in crisis & How you can fix it

India needs free, fair, non-hyphenated and questioning journalism even more as it faces multiple crises.

But the news media is in a crisis of its own. There have been brutal layoffs and pay-cuts. The best of journalism is shrinking, yielding to crude prime-time spectacle.

ThePrint has the finest young reporters, columnists and editors working for it. Sustaining journalism of this quality needs smart and thinking people like you to pay for it. Whether you live in India or overseas, you can do it here.

Support Our Journalism

VIEW COMMENTS