The year 2021 marked an extraordinary phase for the Indian stock market. Traditionally known for their conservative investors, the bourses enthusiastically embraced the listing of new age tech companies, even those which were yet to declare profits. Out of the total ₹178,025 crore raised in the market in CY21 and CY22 by 103 mainboard initial public offerings (IPOs), 27.17% was directed towards new age tech companies that were still fine-tuning their business models and relied on investor funding, according to data from primary capital market tracker Prime Database.
Key players in the Indian tech ecosystem, such as Paytm, Nykaa and Zomato, collectively raised ₹33,025 crore through their IPOs in 2021, despite a meagre combined consolidated revenue of ₹8,093.68 crore in FY20. Indian investors appeared to be seeking the next Amazon or Google, investing in ideas proposed by tech companies valued in the billions.
Following a hiatus of six months, ascribed to the downturn in the stock market, the IPO frenzy at the bourses resurged, witnessing the debut of 57 companies in 2023. However, there has been a notable transformation in the narrative. Only two of them hail from the cohort of new age companies, spearheaded by first-generation entrepreneurs. The tide appears to have shifted back in favour of legacy firms. These stalwarts had successfully raised ₹46,802 crore in the 12 months up to December 17, 2023.
Overpromised, Underdelivered
Denne historien er fra January 2024-utgaven av Outlook Business.
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Denne historien er fra January 2024-utgaven av Outlook Business.
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