Indian startup stocks gain as markets touch historic high
The majority of the listed companies that emerged from the Indian startup ecosystem were trading higher, except for Nykaa and Zomato.
Most Indian startup stocks were trading higher on the bourses on June 3, in step with the wider stock market which touched a new high buoyed by the exit polls that predicted the return of the BJP-led NDA government to power for the third time.
The BSE Sensex and Nifty 50 rose by 3% at 1:50 pm on Monday, which had a positive bearing on the stock price of companies including PolicyBazaar parent PB Infotech, Paytm, Mamaearth parent Honasa Consumer, Go Digit, Awfis, and Delhivery. However, the share price of Zomato and Nykaa was trading lower.
Paytm showed the highest gain at 4.71% on the National Stock Exchange followed by Awfis at 3.15% and Honasa Consumer at 2.85%. In the case of Go Digit and PB Infotech, their share price rose around 1%.
In the case of Zomato, the share price was trading lower by 1.73% and for Nykaa, it was down 2.13%.
However, the share price of these companies did not touch the 52-week high.
An increasing number of Indian startups are looking to get listed on the stock exchanges this year. From the startup ecosystem, Go Digit and Awfis have debuted on the bourses this year and recorded modest gains.
These developments come after a disappointing 2023 for the Indian startups as only one leading company, Honasa Consumer, went public. This year has proved to be different with many more companies like Ola Electric, Mobikwik, FirstCry, and Unicommerce planning to list on the stock markets.
At the peak of the bull run in 2021, a flurry of Indian startups rushed for public listings, including Zomato, Policybazaar, Nykaa, and Paytm. Meanwhile, Freshworks was listed on the US stock markets. However, the share price trajectory of these companies was divergent, especially in the case of Paytm, which has fallen below its issue price.
Today, except in the case of Paytm, most of these companies are now trading higher than their issue price determined during the initial public offering (IPO). In fact, the best-performing stock has been Zomato, which is currently trading at more than double its issue price of Rs 76 per share.
Now, investors are awaiting the results of the Lok Sabha election to be announced tomorrow, June 4.
Edited by Kanishk Singh