New Delhi: At least a dozen Indian firms engaged on preliminary public choices at the moment are beneath further investor scrutiny following the disastrous debut of digital funds startup Paytm, the nation’s greatest ever IPO.
Offerings on the radar embody that of Oravel Stays Ltd., the operator of hotel-booking startup Oyo, which is seeking to increase practically $1 billion. Other sizable listings embody API Holdings Ltd., the mother or father of on-line pharmacy PharmEasy, and logistics firm Delhivery Ltd.
Planned smaller IPOs may have a tougher time pricing shares if there’s a decreased urge for food for brand spanking new listings. The shares of Paytm rival One MobiKwik Systems Ltd. have fallen about 40% within the so-called gray market.
Paytm shares have fallen about 30% because it began buying and selling final week, with a rebound on Tuesday not sufficient to erase losses from the 2 earlier classes. Some firms that have been searching for to profit from the flood of transactions in India’s booming IPO market thus far this 12 months could now rethink the timing and pricing of their points, in accordance with Edelweiss Financial Services Ltd.
Valuation is prone to grow to be the primary sticking level for these searching for to faucet the market. Paytm’s valuation — round 26 occasions price-to-estimated gross sales for the monetary 12 months 2023 — towers above the benchmark S&P BSE Sensex Index on about 4 occasions.