From Zomato to Nykaa, listed startups see stock prices dive amid heavy value correction

Indian startups looking to list on public markets are on the back foot as value correction of new-age technology stocks has made retail investors wary.
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Financial year 2021-22 saw buoyancy in terms of technology company IPOs as foodtech major Zomato set the ball rolling with its public market debut. This was followed by the likes of Cartrade, Nykaa, PolicyBazaar, Paytm , and RateGain.

This also set the ball rolling for Pharmeasy parent API Holdings, budget hotel company Oyo , and consumer electronics company, boAt Lifestyle.

Value correction for the stocks of the newly listed tech stocks and volatility in the global markets have dampened the spirits, with the government considering postponing the LIC IPO

According to reports, OYO was also looking at a valuation of $7 billion, a 33 percent decrease from initial reports that said the company was looking to be valued at $9 billion.

Fintech player MobiKwik too has put its public market debut on hold taking a cue from Paytm’s performance on the bourses, which has seen its market cap erode by nearly 50 percent from $14.5 billion at the time of listing to $6.8 billion on Thursday at market close. 

Here is a look at the performance of the new-age technology stocks that have listed in FY 2021-22 and where they stand today.

Zomato

The foodtech major, which listed on the bourses on July 23, 2021, closed Thursday’s trade at Rs 82.15 per share, a leg up from its previous close of Rs 79.65. The company’s market cap stood at $8.51 billion as compared to its $12 billion public market debut. 

With an offer price of Rs 76 per share, the stock traded at its highest on November 16, 2021, at Rs 169.10. 

The company reported a net loss of Rs 67.2 crore for the December quarter as compared to Rs 352.6 crore in the year-ago period, while revenue from operations was up 82.47 percent year-on-year at Rs 1,112 crore.

CarTrade

Automobile marketplace CarTrade Tech listed in August 2021 with an issue price of Rs 1,618 per share. The shares of the company closed at Rs 557.15 apiece on Thursday, with a market cap of $341 million approximately.

The company faces fierce competition from the likes of Droom, which is set to go public in 2022, Cars24 as well as Spinny, all of which command a private market valuation of over $1 billion.

Nykaa

FSN E-Commerce Ventures, the parent entity of online beauty platform Nykaa, made a strong public market debut in November 2021.

The stocks were priced at an issue price of Rs 1,125 apiece, with the company valued at $7.4 billion. On Thursday, Nykaa’s shares closed at Rs 1,506.20, with a market cap of nearly $9.4 billion. 

The company closed its third quarter in December at a net profit of Rs 29.01 crore, down 57.87 percent from the corresponding quarter last year. Its revenue from operations grew by 35.94 percent year-on-year to Rs 1,098.36 crore. 

PolicyBazaar 

PB Fintech Ltd, the parent entity of Policybazaar, closed the day at Rs 659.45 per share on Thursday. The company, which was valued at $6.2 billion during its IPO, had set an offer price of Rs 980 per share.

The current market cap of the company stood at $1.09 billion, a sharp decline since its public market debut in November 2021.

Paytm

From an issue price of Rs 2,150 per share, Paytm closed at Rs 796.30 per share on Thursday. The company’s market cap stood at $6.8 billion as compared to its $16 billion private valuation and $14.5 billion on the day of listing.

The shares of Paytm traded at their highest on November 18, 2021, at Rs 1,961.05 while the stock traded at its lowest on February 24, 2022, at Rs 771.15.

The company posted a consolidated loss of Rs 778.5 crore for its third quarter of FY 2021-22, as compared to Rs 532 crore for the year-ago period. 

Rate Gain

Seeking a valuation of $600 million, travel-SaaS platform RateGain Travel Technologies debuted on the public markets in December 2021 at a 15 percent discount to its offer price of Rs 425 per share. 

On Thursday, the company’s shares closed at Rs 291.60 apiece, at a market cap of $412 million. 

MapMyIndia

One of the oldest private companies to make its public market debut in 2021, CE Infosystems Ltd or MapMyIndia closed the day at Rs 1,404.40 per share on Thursday, a leg up from its IPO price of Rs 1,033 per share. 

The company, which went public in December 2021, is valued at nearly $1.12 billion. The current market cap of the company stands at $984.7 million.

Edited by Saheli Sen Gupta

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