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A Tech IPO Boom Is Coming to Unicorn-Rich India – News

NEW DELHI—India is gearing up for tech IPOs, together with two value greater than $1 billion, as startups look to faucet a inventory market that has proved resilient regardless of Covid-19.

The preliminary public choices mirror the maturing of a technology of e-commerce and digital-economy corporations, bankers say, lots of which have grown quickly in the course of the pandemic as well-off city-dwellers flip to them when buying merchandise from milk to medicines.

On July 16, the operator of the Paytm digital-finance app, One97 Communications Ltd., filed a prospectus for what can be India’s largest IPO in local-currency phrases. The group presents companies resembling a cellular pockets, loans and stock-trading, and is backed by

Jack Ma’s

Chinese language financial-technology big Ant Group Co. One97 goals to subject new and current shares value a complete of as much as 166 billion rupees, the equal of $2.23 billion.

Different corporations contemplating IPOs embody digital-payments platform One MobiKwik Programs Ltd., which filed its prospectus earlier this month, and logistics and supply-chain-services supplier Delhivery Pvt., in keeping with an organization spokeswoman. On-line cosmetics vendor Nykaa E-Retail Pvt., API Holdings Pvt., the mother or father firm of on-line pharmacy PharmEasy, and PB Fintech Pvt., the mother or father of insurance coverage aggregator, are additionally contemplating listings, in keeping with individuals conversant in their plans.

“That is the primary set of those corporations coming to the general public market” in India, mentioned

Kaustubh Kulkarni,

the pinnacle of funding banking for India on the native unit of

JPMorgan Chase

& Co.

Demand for the shares is prone to be robust, given the businesses’ model recognition, mentioned Mr. Kulkarni, who can be the financial institution’s co-head of funding banking for South and Southeast Asia. “Most of those corporations are providing merchandise, companies or capabilities which hundreds of thousands, if not a whole bunch of hundreds of thousands, of shoppers are using on a day-to-day foundation,” he mentioned.

Final week traders positioned orders value 38 occasions the shares being supplied by Zomato Ltd., India’s reply to

DoorDash Inc.

The food-delivery group raised round 94 billion rupees, the equal of $1.26 billion, and its shares are because of begin buying and selling on July 27.

Some market-watchers say Indian tech has loads of room to develop, as extra consumption shifts on-line. Earlier-stage traders have poured about $16 billion into Indian startups this yr, creating 16 new unicorns—younger non-public corporations valued at $1 billion or extra—in keeping with knowledge agency Enterprise Intelligence.

India’s unicorn inhabitants will rise to 150 by 2025 from 60 now, predicted

Gaurav Singhal,

the pinnacle of India shopper expertise at

Bank of America Corp.

’s investment-banking arm. Many will ultimately look to drift, he mentioned, translating into a giant improve in market capitalization.

“India will see $300 billion to $400 billion of market-cap creation within the web ecosystem within the subsequent 5 years,” mentioned Mr. Singhal.

The offers already beneath manner present how India’s monetary sector has been swept up in a world increase, even because the nation data greater than 30,000 new Covid-19 circumstances a day, among the many highest every day counts on the planet.

Already this yr, India has hosted a rush of IPOs—becoming a member of a worldwide surge fueled partly by tech companies from elsewhere in Asia, resembling China’s

Kuaishou Technology

and South Korea’s

Coupang Inc.

The operator of the Paytm digital-finance app filed a prospectus for what can be India’s largest IPO in local-currency phrases.


Dhiraj Singh/Bloomberg Information

India’s 22 IPOs within the first six months of 2021 introduced in $3.7 billion, a file half-year haul, in keeping with Prime Database Group, a analysis agency in New Delhi. Shares in some lately listed corporations are buying and selling at twice their IPO value.

On the identical time, Indian inventory indexes have soared as traders bet on big listed companies. The S&P BSE Sensex has hit a collection of file highs, most lately on July 15, and worldwide traders have poured about $7.7 billion into Indian shares this yr, official knowledge reveals.

Thousands and thousands of particular person Indian traders are buying and selling shares for the primary time, once more mirroring trends seen in the U.S. and another markets.

Harpreet Singh,

a 23-year-old from the northern metropolis of Pathankot, began dabbling available in the market final yr whereas ready for the possibility to check overseas.

Counting on recommendation from movies on YouTube and Telegram, Mr. Singh mentioned, he has misplaced cash at occasions—however nonetheless finds buying and selling shares extra interesting than getting a job in his hometown, the place he mentioned private-sector work pays barely 10,000 rupees a month, equal to about $134.

“When you’ve got data of shares,” he mentioned, “then in three to 4 months you’ll be able to earn a whole bunch of hundreds of rupees, sitting at house.”

Write to Shefali Anand at [email protected]

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