Tech

Technology IPO boom coming to unicorn-rich India

New Delhi — India heads for a tech IPO with two worth over $ 1 billion as starters seek to open up a stock market that has proven resilient despite Covid-19 We are preparing.

Initial public offerings reflect the maturity of e-commerce and digital economies across generations, many of which grew rapidly during the pandemic, and wealthy urban dwellers have products ranging from milk to medicine, according to bankers. Rely on them when buying.

On July 16th, Paytm Digital Finance App operator One97 Communications Ltd. submitted a prospectus on what will be India’s largest IPO on a local currency basis. The group offers services such as mobile wallets, loans and stock trading, and is backed by Jack Ma’s Chinese financial technology giant Ant Group Co. One97 aims to issue new and existing shares worth up to Rs 166 billion in total. That’s $ 2.23 billion.

Other companies considering an IPO include digital payments platform One MobiKwik Systems Ltd., which submitted a prospectus earlier this month, and logistics and supply chain service provider Delhivery Pvt, a spokeswoman for the company said. It is included. Nykaa E-Retail Pvt, an online cosmetics seller. , API Holdings Pvt, the parent company of the online pharmacy Pharm Easy. , PB Fintech Pvt, the parent company of insurance aggregator Policybazaar.com. Even, according to people familiar with the plan, they are considering listing. ..

Kaustubh Kulkarni, Head of Investment Banking in India at JPMorgan Chase & Co’s local unit, said:

Given the brand awareness of both companies, demand for equities is likely to be strong, said Kurkarni, co-head of the bank’s investment banks in South and Southeast Asia. “Most of these companies offer products, services, or features that millions, if not hundreds of millions, of customers use on a daily basis,” he said.

Last week, the investor was Zomato Ltd, India’s answer to DoorDash. Placed an order equivalent to 38 times the shares offered by. Co., Ltd.

The Food Delivery Group has raised approximately Rs. 94 billion, worth $ 1.26 billion, and its shares are expected to begin trading on July 27.

Some market watchers say there is plenty of room for growth in Indian technology as online consumption increases. Early-stage investors have invested about $ 16 billion in Indian start-ups this year, creating 16 new unicorns (young private companies worth more than $ 1 billion), according to data company Venture Intelligence.

Gaurav Singhal, Head of Indian Consumer Technology at Bank of America Corp, predicts that India’s unicorn population will grow from 60 today to 150 by 2025...

Investment banking division. He said many would eventually appear to fluctuate, leading to a significant increase in market capitalization.

“In India, the Internet ecosystem will have a market capitalization of $ 300- $ 400 billion over the next five years,” said Singhal.

Transactions already underway show how India’s financial sector has been wiped out in the midst of an international boom.

Already this year, India has hosted an IPO rush. This is part of a global surge partially facilitated by technology companies from other parts of Asia such as Kuaishou Technology in China and Coupang in South Korea. Co., Ltd.

The operator of the Paytm Digital Finance App has submitted a prospectus on what will be India’s largest IPO in local currency.


Photo:

Dhiraj Singh / Bloomberg News

According to Prime Database Group, a research firm in New Delhi, 22 IPOs in India in the first half of 2021 generated $ 3.7 billion. This is a record half year length. Stocks of recently listed companies are trading at twice the IPO price.

At the same time, India’s stock index soared as investors bet on large publicly traded companies. S & P BSE Sensex recently hit a series of highs on July 15, official data show that international investors have poured about $ 7.7 billion into Indian stocks this year.

Millions of retail investors are trading stocks for the first time, which also reflects the trends seen in the United States and several other markets.

Born in the northern city of Pathankot, 23-year-old Harpreet Singh began his career last year while waiting for a chance to study abroad.

Singh sometimes lost money, relying on advice from YouTube and Telegram videos, but still stocks rather than getting a job in his hometown, saying that private sector jobs only pay Rs 10,000 a month. It’s about $ 134, which I find trading more attractive.

“With knowledge of stocks, you can sit at home and earn hundreds of thousands of rupees in three to four months,” he said.

Write to Shefali Anand at Shefali.anand@wsj.com

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Technology IPO boom coming to unicorn-rich India

Source link Technology IPO boom coming to unicorn-rich India

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