IPOs in India
New-Age Tech IPOs: Zomato, Paytm and Others
Loss-making internet companies listed from 2021, with mixed results that taught investors about valuations and profitability.
A test for unprofitable firms.
Zomato
Its 2021 IPO listed at a premium and later reached profitability.
Paytm
Its 2021 IPO was priced high and listed sharply lower, reaching a fraction of the issue price.
Others
Nykaa, Policybazaar and Swiggy also listed.
Lesson
Revenue growth without a path to profit can lead to volatile prices.
A bad debut
Investors who bought at the top saw large losses in Paytm's first months.
Assuming every fast-growing firm is a good investment
Price paid matters.
Key takeaways
- Tech IPOs boomed in 2021.
- Paytm listed sharply below issue price.
- Zomato later turned profitable.
- Valuation and profits matter.
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