🥳 IPO szn is back
And it’s bigger than ever!
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The Big StoryÂ
The world has changed dramatically since the coronavirus pandemic hit last year. Businesses shut down, unemployment reached unprecedented levels, violence erupted in several parts of the world... in short, it was all chaotic.Â
But while the economies suffered, global stock markets told a different story. As the world went remote, stay-at-home technologies experienced a significant boom. Consequently, stocks of tech companies saw an unparalleled rise in their prices as the markets saw a record number of people entering the stock market.
But it wasn't just limited to tech firms. Other sectors like renewable energy and online retailers wanted to capitalize on this new demographic, giving rise to a never-before-seen trend in companies going public.Â
In the first half of this year, 670 companies issued IPOs and raised a combined $140.3 billion—the highest amount raised in two decades during the same period. Nasdaq saw 105 listings in the first half of 2021, raising a whopping $33.9 billion. That’s five times more than the capital raised last year!
Meanwhile, in India, the BSE and the NSE saw 47 IPO listings till July this year, raising a staggering $5456.3 million. And the year is only expected to get better after the Indian government announced its Rs. 1.75 trillion divestment plan in some of its public sector companies, including LIC, BPCL, Shipping Corp, Container Corporation, among others.
Additionally, this IPO boom is further reinforced by a flurry of Special Purpose Acquisition Company (SPAC) deals, which has raised another $97.6 billion this year.Â
And this boom ain't stopping anytime soon.
Zomato, a Gurugram-based popular food delivery app, is launching its Rs. 9,375 crore IPO tomorrow, becoming the first online food aggregators to do so. It's also the second-largest IPO since SBI Cards and Payment Services’ Rs 10,341-crore issue in March 2020. The IPO, for which the subscriptions will be open from July 14 to July 16, is expected to take Zomato's valuation to $9 billion.Â
But wait! That's not all. There's another company that's planning to go public with an issue even bigger than Zomato’s.
Paytm, a digital payments and financial services company, has also received approval from its board for its Rs. 16,600 crore IPO. One97 Communications Ltd., which owns the company, said that it will release its draft red herring prospectus (DRHP) later this week.Â
Before you get all hyped up and throw your hard-earned money at these companies, it’s vital to check their financials: Is the company overvalued or undervalued? How much revenue is it making year-on-year? How does it plan to use its raised capital? All these questions need answers and guess what? we’ve made it easy for you to find out.Â
Well, that's all for today.
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See ya later, Bye! 👋