This year has been a remarkable year for start-ups in India, despite the second wave of COVID-19 that sent the economy for a toss. Many new up-and-comers have gained a strong foothold in the market. Notably, four such start-ups have recently announced their move to IPO. Delhivery, Zomato, Paytm and Nykaa are leading the race to make the listing in the near future. In a tweet on July 8, the CEO of Niti Aayog, Amitabh Kant, congratulated these four start-ups for taking the first step in listing in the stock markets and raising the growth capital via their IPOs.
“Delighted that Indian Startups- Paytm, Zomato, Nykaa and Delhivery will be listing in the Indian stock markets & raising growth capital through IPOs. This demonstrates the vibrancy & dynamism of our Startup movement & the maturity of our capital markets,” said Kant in his tweet.
Here are the details of the four start-ups that are looking to take the next step and go ahead with their public issue.
Paytm: All the Makings of a Historical IPO
After much-awaited anticipation, the Fintech giant is taking its first steps towards a historical IPO that is estimated to be worth $2.3 billion. The public offering is supposedly set to take place in November of 2021. One97 Communications, the parent company of the fintech brand, is moving to raise $1.6 billion by way of issuing fresh equity. As of now the company is awaiting approval and is aiming to get that in its extraordinary general meeting (EGM), which is supposed to be held on July 12 according to a Reuters report. Paytm has received in-principle approval from the board for its $3 billion move to IPO. An additional Rs 4,600 crore is supposed to be raised from the company’s sales of its equity shares from the existing shareholders. Paytm has also been circulating an offer for sale (OFS) to its employees, so they can take part in this monumental move to market as per a report by Bloomberg.
Zomato Giving Chase
According to the draft red herring prospectus (DRHP) filed by Zomato, it is set to go ahead with its public issue on July 14, which will then close on July 16. The company is planning on raising Rs 9,375 crore through its initial public offering (IPO). This breaks down into a fresh issue of Rs 9,000 crore and an offer for sale (OFS) of Rs 375 crore from its shareholder Info Edge India Ltd.
Zomato got its fundraising application for the IPO cleared by SEBI earlier this week. The company raised $250 million in its pre-IPO funding round in January of 2021, which brought up the valuation of the company to $5.4 billion.
Nykaa Gearing Up
This beauty and fashion retailer is looking to go public later this fiscal with its IPO which is set at a valuation of $4.5 billion. According to a report by Live Mint, this valuation is a big leap from the previous $3 billion that the company held. This steep rise is mostly attributed to the shift towards the digital market by customers in the wake of the COVID-19 pandemic. The company will aim to keep the size of the public offer listing between $500 million and $700 million.
Delhivery Making the Rounds
The Gurgaon-based logistics start-up is eyeing an IPO valuation of $4 billion that is set to take place later in the March quarter, according to a report by Live Mint. It was also cited that the company is likely to sell of a 10-15 per cent stake for around $500-$600 million in its public issue. The company will most likely file for its DRHP sometime in July or August with the Securities and Exchange Board of India (SEBI), the report mentions.