The Start-up Industry in India has bloomed on a different scale in the recent years. Further in order to achieve newer heights every start-up requires capital to grow its business. Moreover, start-up entrepreneur must have fantasized for going public at some time during their company’s development. In this part we shall discuss the recent IPOs by Start-ups in India
Start-up IPOs in 2021
The year of 2021 saw one of the biggest changes in the Start-up industry. Almost 10 Start-ups have gone public in the year 2021. It is interesting since none of the start-ups prior to 2021 have issued Initial Public offering (IPO). The start-ups that have issued the IPO are as under:
Nazara Technologies Limited is one of the leading mobile games company headquartered in Mumbai, which is engaged in acquisition of, value addition to and distribution, of mobile games across emerging markets such as India, Middle East, Africa, South East Asia and Latin America.
Nazara Technologies’ initial public offering (IPO) got bids for 512,517,642 shares out of a total of 2,920,997 shares. The IPO consisted of a sale of 5.29 million shares, or 16.7% of the company, at a price range of Rs 1,100-1,101 a share. Nazara was estimated to be valued at Rs 3,353 crore in the IPO, or more than eight times its annualised income for the first half of 2020-21.
Zomato is India’s foremost online restaurant aggregator, having been founded in 2008. The start-up began as a platform for people to find restaurants, write reviews, and upload related photos to the internet.
The Zomato IPO got bids for 27,51,27,77,370 shares out of a total of 71,92,33,522 shares over the three-day period. The issue included new stock worth Rs 9,000 crore and an offer for sale by Info Edge valued up to Rs 375 crore (India). The price band was set at Rs 72-76 per share, giving the company a $9 billion valuation.
CarTrade Tech Ltd. (CTTL) is a multi-channel auto platform that offers coverage and presence across a wide range of vehicle types and value-added services. Over the period April 2020 to March 2021, its platforms CarWale and BikeWale ranked first in relative online search popularity when compared to their key competitors.
CarTrade’s IPO attracted bids for 26,31,74,823 shares during the course of three days, compared to the issue size of 1,29,72,552. The offering was an offer for sale of up to 1,85,32,216 shares at a price range of Rs 1,585-1,618 per share, with the firm valued at Rs 7,416 crore at the upper end of the range.
Freshworks is a global supplier of SaaS-based software solutions offering a variety of product suites, including sales CRM software, recruiting tools, and customer-support helpdesk software Freshworks, which was founded in Chennai, India, in 2010 by Girish Mathrubootham and Shan Krishnasamy, is now listed in the United States, with its headquarters in San Mateo, California.
It sold 28.5 million shares at $36 apiece, up from the marketed range of $32-34 it had announced. Driven by strong investor interest, Freshworks’ share price surged by as much as 33% to $48 in initial trade on the Nasdaq.
Nykaa is an Indian e-commerce startup based in Mumbai and started by Falguni Nayar in 2012. It provides beauty, health, and fashion items online, through mobile applications, and in 76 locations. It was the first unicorn business in India to be led by a woman in 2020.
According to Nykaa’s red herring prospectus, the company sold stock worth Rs 630 crore and raised Rs 4,721 crore through an offer for sale. The Nykaa IPO price range was Rs 1,085-1,125 per share, with the firm valued at Rs 53,204 crore ($7.1 billion) at the top end of the range.
Policybazaar is a Gurgaon-based insurance aggregator and global financial technology firm. Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar launched the firm in June 2008. Users may compare insurance plans and other financial services from major insurance firms using a digital platform (website and app).
The Policybazaar IPO got bids for 57.24 crore equity shares during the three-day share sale, compared to an offer size of 3.45 crore. Fresh stock worth Rs 3,750 crore and an offer for sale worth up to Rs 1,960 crore were included in the offering. The price band for the stock was fixed at Rs 940-980 per share, valuing the business at Rs 44,051 crore.
Paytm was launched in August 2010 in Noida, Delhi NCR. It is a global Indian technology business situated in Noida that specializes in digital payment systems, e-commerce, and financial services. Paytm offers online services such as mobile recharges, utility bill payments, travel, movie, and event bookings, etc.
The Paytm IPO got bids for 91,409,844 equity shares throughout the three-day period, out of a total issue size of 4,83,89,422. Fresh stock worth Rs 8,300 crore and an offer for sale worth Rs 10,000 crore were sold at a price range of Rs 2,080-2,150 per share, with the business valued at Rs 1.50 lakh crore at the higher end of the range.
MapmyIndia is one of India’s most complete GPS navigation and tracking service providers, with consumers engaging across many platforms. The New Delhi-based firm began as C.E Infosystems in 1995 and has since expanded to include consumer navigation devices, fleet-tracking solutions for taxi and trucking industries, and mobile apps.
The MapmyIndia IPO got bids for 1,089,895,450 shares throughout the three-day period, compared to the issue size of 70,44,762. The offering consisted only of an offer to sell shares worth Rs 1,039.61 crore at a price range of Rs 1,000-1,033.
Despite the fact that travel is one of the most hit industries as a result of the epidemic, EaseMyTrip debuted on the stock market on March 8 of this year. The app allows users to arrange flights, accommodations, and visa processing, among other things.
Shares worth INR 510 crore were issued, and they were 159 times oversubscribed. The firm was valued at INR 2,040 crore at the IPO. It closed at INR 206.50 on the first day of trading, 10% higher than the IPO price.
RateGain is a software business that specializes in building hospitality and travel technology. Users can utilize these technologies to streamline processes in real time.
This traveltech business had a shaky debut on the stock markets. It was launched on the NSE at a discount of 15.29%, with the shares trading at INR 360 per share, compared to the issue price of INR 425 per share. On the BSE, its shares were listed for INR 364.80, with a 14.16 percent discount. Chopra founded the firm in 2004 and it provides a SaaS application to help hospitality organizations optimize their operations.
It can be inferred from the above that a trend for IPOs have started in the Indian Start-up Industry. Further a requirement for expanding the business has instilled confidence of major start-ups going public in the next years. As of June 2021 there were almost 53 Unicorn Start-ups. These unicorn start-ups are expected to be the next big companies going public. Further unicorns like Pharmeasy and logistics tech unicorn Delhivery have already filed the regulatory draft red herring prospectus (DRHP) which means that they would be hitting the stock exchanges soon.
In the next part we shall be dealing with as how IPOs have been a significant booster for the start-up industry and why is IPOs becoming increasingly popular for a start-up’s growth.