Eight listed tech startups including Zomato, Nykaa, PolicyBazaar lose Rs 38K crore in market value
In a matter of just 16 trading days in 2022, since January 3, the S&P BSE Sensex has seen a huge bout of volatility.
On January 24, at the day’s low of 56,984.01, the 30-stock Sensex was down 1,326.08 points – or 2.27 percent – compared to 2022’s opening value of 58,310.09 on January 3.
Just five trading days back, on January 18, the Sensex had touched 61,475.15 points – its highest in 2022. In comparison, at Monday's low, the index was down by a whopping 4,491.14 points – or 7.31 percent.
And if one compares the Sensex’s 52-week high (and also its recent life-high) of 62,245.43 points, on October 19 last year, at Monday’s low point, the benchmark index has seen a fall of 5,261.42 points – 8.45 percent – in a matter of just 68 trading days.
Clearly, the recent bout of volatility shows steep moves on the benchmark index, and the same has its bearing on the market performance of eight tech startups that took the public route through their initial public offerings (IPOs) in 2021 – also hailed as the best year ever for IPOs.
On Monday, alongside the 1,545.67 – or 2.62 percent – decline in the S&P BSE Sensex, the eight tech startups witnessed an erosion of Rs 38,171 crore ($5.1 billion) in their total market value.
The total market value of these eight listed companies stood close to Rs 2.70 lakh crore ($36.3 billion) on Monday, as compared to Rs 3.08 lakh crore ($41.4 billion) on Friday.
At YourStory, we analysed these eight tech startups’ listing day closing prices and the value at which the S&P BSE Sensex closed on the respective listing days.
And, after rebasing the closing prices and the Sensex’s close to 10,000 on the respective listing days, we have arrived at the invested value’s performance at the close of trade on January 24 (Monday).
So, if one had invested an amount of Rs 10,000 in these tech startups and the Sensex on the respective listing days, YourStory Research has calculated the value of that amount as of January 24 (Monday).
Online travel player Easy Trip Planner, which operates, got listed on March 19 last year, and closed trade at Rs 208.3 a piece on its listing day when the Sensex closed at 49,858.24 points.
Our calculations indicate that Rs 10,000 invested in EaseMyTrip and the Sensex at the time would have translated to Rs 25,787 and Rs 11,531 each over the 211 trading days until January 24.
On January 24, however, at Rs 537.15 apiece, EaseMyTrip has fallen by Rs 28.25 apiece – or 5.00 percent – compared to its Friday close of Rs 565.4 apiece.
, the foodtech unicorn which got listed on July 23 last year, quoted Rs 91.4 apiece at close of trade on January 24, down by Rs 22.35 apiece – or 19.65 percent – compared to Rs 113.75 apiece on Friday.
And, Rs 10,000 invested in Zomato and Sensex would have translated to Rs 7,263 and Rs 10,852 respectively, over 127 trading days since Zomato’s listing.
At Rs 768.8 apiece at Monday's close,lost Rs 44.4 apiece – or 5.46 percent – against its Friday close of Rs 813.2 apiece.
And, in 108 trading days since its listing on August 20 last year, the value of Rs 10,000 would have nearly halved to Rs 5,125 while the same amount invested in the Sensex would have grown to a meagre Rs 10,391.
At Rs 1,734.85 apiece at the close of trading hours on Monday, FSN E-Commerce Ventures, which operates, has seen a correction of Rs 257.55 apiece – or 12.93 percent – compared to Rs 1,992.4 apiece on Friday.
In the 53 trading days since November 10, when Nykaa got listed, the Rs 10,000 would have reduced to Rs 7,862 while the same amount invested on the Sensex would have reduced to Rs 9,526.
PB Fintech, which runs, quoted Rs 776.6 apiece at Monday's close, which is a decline of Rs 87.85 apiece – or 10.16 percent – compared to its Friday close of Rs 864.45 apiece.
Listed on November 15 last year, PolicyBazaar would have turned Rs 10,000 into Rs 6,456 while the same amount invested in the Sensex on the same day would have stood reduced to Rs 9,468 on January 24.
One97 Communications, which operates, has been in the eye of a storm since its listing on November 18 last year.
At Rs 917.35 apiece on Monday, the stock was down by Rs 42.55 apiece – or 4.43 percent – on Monday, as compared to Rs 959.9 apiece at its closing price on Friday. The stock saw decent recovery after touching Monday's low of Rs 881.5 apiece.
In a matter of 47 trading days, the Rs 10,000 invested on the basis of the closing price of Paytm on November 17 would have fallen to Rs 5,865 while the same amount invested in the Sensex would have reduced to Rs 9,640.
At Rs 401.3 apiece on Monday's close,Travel Technologies fell by Rs 30.25 apiece – or 7.01 percent – compared to its Friday close of Rs 431.55 apiece.
However, the good news is that Rs 10,000 invested at RateGain’s closing price, on December 17 last year, would have grown to Rs 11,786 while the same amount invested in Sensex would have increased to just Rs 10,084 in a matter of 27 trading days.
Among the tech startups that went public in 2021, C.E. Info Systems – which operates– is the oldest. At Rs 1,443.05 apiece on Monday, the stock lost Rs 159.8 apiece – or 9.94 percent – compared to its Friday close of Rs 1,606.85.
MaymyIndia is the third-best performing of the eight — following EaseMyTrip and RateGain — when it comes to the growth in the invested value of Rs 10,000, which would have increased to Rs 10,376 in a matter of 25 trading days since December 21 last year. The Sensex, in the meantime, would have grown to Rs 10,208.
Coming back to the equity markets, the current bout of volatility is here to stay, as February 1 – the unveiling day of the Union Budget for financial year 2022-23 – comes closer.
In the meantime, internationally, technology stocks have been taking a beating in recent weeks as multiple macro-economic factors like inflation and interest rates intertwine.
Given the way secondary markets have been behaving lately, it would be interesting to watch the implications of the same on the primary markets, as a host of companies are still in the queue to get listed.
Investment bankers opine that if secondary markets become conducive around the Budget, we could see many IPOs proceeding as the promoters have planned.
“The suspense is still intact around the biggest surprise for the markets – the long-planned IPO of Life Insurance Corporation of India (LIC),” says an investment banker.
There are enough and more chances that the government will make its LIC IPO plans public through the Budget. “The Sensex above 55,000 happens to be a psychological plus-point to proceed with the LIC IPO,” says the I-banker.
And if that happens sooner, they add that the pipeline of IPOs in 2022 could become a pipedream. “LIC would suck away investor liquidity, and its listing performance would be the defining factor, for equity markets as well as the IPOs in queue.”