What’s inside:
This article discusses the recent trends in IPOs, focusing on Lenskart, Groww, PhysicsWallah, and Pine Labs, shedding light on their market performance and investor sentiment.
The excitement around new age IPOs seems to be going down. Recently, Lenskart’s shares were listed at a 3% discount, making investors wary about investing in high-valued digital companies.
This decline in confidence is impacting other IPOs too. Notably, the gray market premium (GMP) for popular startups like Groww, PhysicsWallah, and Pine Labs has dropped to a low 2-5%. Investors are now being more cautious and are carefully considering startup valuations.
For instance, the Groww IPO, worth Rs 6,632 crore, saw a strong response with a subscription of 17.6 times. However, its GMP is only 4-5%, indicating limited expectations for profits on the listing day. PhysicsWallah’s IPO of Rs 3,480 crore is opening on November 11 and closing on November 13, but it recently reported a loss, causing its GMP to fall from Rs 9 to Rs 4.
Pine Labs is facing a tough start as its IPO of Rs 3,890 crore was only 38% subscribed by the second day. The company also reported a loss of Rs 145 crore despite having revenues of Rs 2,274 crore. Its GMP has decreased significantly from Rs 35 to Rs 4.
Moving forward, these IPOs will be closely watched as investor sentiment continues to shift. The cautious mood in the market may affect upcoming listings and the overall interest in startup investments.
Summary:
- Lenskart’s IPO faced a 3% discount, impacting investor confidence.
- Gray market premiums for startups have dropped to 2-5%.
- Groww’s IPO was subscribed 17.6 times, but with limited profit expectations.
- PhysicsWallah’s IPO is opening soon, but it reported a loss.
- Pine Labs’ IPO subscription is low, with a significant drop in GMP.
