On the back of a moderate growth outlook, the Indian logistics and supply chain company’s share prices fell by 31% last week.
PB Fintech and a few other cutting-edge businesses also went under. The question of what to do with the shares that some fund houses had purchased from cutting-edge technology companies during their Initial Public Offerings (IPOs) now arises: hold for long-haul prospects or exit and cut misfortunes.
The fund houses that are still holding onto their shares are listed here. Recently, the new-age stocks of many investors’ favourites have lost some of their shine.
In the past year, many of these businesses’ share prices have more than doubled. These new-age businesses, in contrast to traditional businesses with a focus on assets, place their bets on innovative business models that make use of technology to improve their operations.
With the exception of Paytm and CarTrade Tech, some startups have launched Initial Public Offerings (IPOs) over the past two years and received substantial premiums upon listing. Even though these companies reported negative earnings, mutual funds also showed interest in a few of them, betting heavily on their future prospects.
Due to Nasdaq’s valuation cues and promoter and early investor greed, their IPOs were priced aggressively. In order to profit from the listing, primary market investors were also avaricious.
The head of retail research at HDFC Securities, Deepak Jasani, explains, “But soon euphoria in valuation waned, and these stocks continued to fall due to poor visibility of revenue growth and margins.”
The following is the Prime Database-categorized list of cutting-edge tech companies that were listed after January 2021 and to which mutual funds significantly reduced their exposure.
Share Prices
As of October 25, 2022, the stocks had a % return value. Source:Date: ACEMF. Easy Trip Planners Gain or loss on a listing day (as compared to the offer price):11% Industry: Services related to travel, tours, and tours-related tours business profile for Quant Active, Navi Large & Midcap, and Navi ELSS Tax Saver: Indian online travel company EaseMyTrip was established in 2008.
White-label services, air tickets, vacation packages, hotel reservations, and bus reservations are all offered by it.
Date of listing by Nazara Technologies: Gain or loss on a listing day (as compared to the offer price): 43% Industry: Topics in digital entertainment that received a lot of attention: Business profile: ICICI Pru Flexicap, Aditya Birla SL Small Cap, and Motilal Oswal Dynamic FundNazara Technologies is a leading gaming and sports media platform based in India that operates in both developing and developed global markets.
It provides gamified learning ecosystems, e-sports, and interactive gaming.
Date of Zomato listing: Gain or loss on a listing day (from the offer price): 66% Industry: E-commerce and retail products with significant exposure: Nippon India Small Cap, Franklin India Flexi Cap Fund, and Mirae Asset Emerging Bluechip FundZomato is an Indian global eatery aggregator and food conveyance organization.
Its technology platform, which went live in 2010, connects restaurant partners, delivery partners, and customers to meet a variety of needs.
Date of CarTrade Tech’s listing: Gain or loss on a listing day (as compared to the offer price): 7% Industry: E-commerce and retail products with significant exposure: DSP Equity Opportunities, HDFC Large and Mid-Cap Fund, and ICICI Pru TechnologyCartradetech.com is a multi-channel auto platform that offers value-added services and covers a wide range of vehicle makes and models.
It operates under a number of brands: BikeWale, CarTradeExchange, Adroit Auto, AutoBiz, CarWale, CarTrade, Shriram Automall, and AutoBiz. It makes it possible for customers, dealerships, OEMs, and other businesses to buy and sell automobiles via these platforms.
Date of listing for FSN E-Commerce Ventures: Gain or loss on a listing day (from the offer price): 96% Industry: E-commerce and retail products with significant exposure: Business profile: ICICI Pru Flexicap, UTI Flexi Cap, and SBI Magnum Equity ESG FundFSN’s consumer technology platform Nykaa, founded in 2012, provides customers with a content-driven, lifestyle retail experience.
Beauty, personal care, and fashion products, including its own, make up the company’s diverse portfolio.
Date of PB Fintech listing: Gain or loss on a listing day (as compared to the offer price): 23% Industry: Topics in fintech that received a lot of attention: Business profile: Invesco India Contra, Franklin India Prima Fund, and Mirae Asset Emerging Bluechip.
The most prominent online insurance and lending platform, PB Fintech, provides access to insurance, credit, and other financial products. Utilizing the power of technology, data, and innovation, it is the largest online platform in India for insurance (PolicyBazaar) and lending (Paisabazaar) products.
Date of publication: One97 CommunicationsGain or loss on a listing day (as compared to the offer price): 27% Industry: Topics in fintech that received a lot of attention: Aditya Birla SL Frontline Equity, Mirae Asset Emerging Bluechip Fund, and Mirae Asset FocusedPaytm, which is owned by One 97 Communications, is India’s leading digital ecosystem for businesses and consumers.
Customers can get financial services, cloud and commerce services, and payment services from Paytm.
Date of Delhivery’s listing: Gain or loss on a listing day (from the offer price):10% Sector: Schemes from logistics solution providers that received a lot of attention: Business profile for SBI Equity Hybrid, SBI Focused Equity, and Mirae Asset Midcap Fund: Delhivery is an Indian logistics and delivery company that was established in 2011.
It provides freight services, supply chain software, heavy goods delivery, express parcel delivery, truckload freight, cross-border express, and supply chain solutions. Disclaimer: Before making any investment decisions, Moneycontrol.com recommends consulting certified experts.
