TechnologyPaytm listing debacle casts pall on pipeline of India...

Paytm listing debacle casts pall on pipeline of India tech IPOs


Previously in November, Paytm founder Vijay Shekhar Sharma travelled to Tirupati in hilly southern India. Its temple, well known for advertising and marketing very good fortune and its own riches, was an apt spot for Sharma “to seek [the] blessing of God” just before he released India’s biggest-at any time preliminary public providing.

The IPO did not observe the script this week, with shares in the fintech plunging more than a 3rd in its to start with two days as a public organization, producing it a person of the worst debuts in Indian inventory market place record. Shares in the group, which raised $2.5bn and was valued at $20bn, have given that bounced but continue being about 17 for every cent beneath their situation selling price.

The debacle has set the spotlight on Paytm, its shareholders SoftBank and Alibaba, and bookrunners on the IPO like Goldman Sachs, Morgan Stanley and Citigroup. It has also sparked problem from buyers and business people, fearful that it could derail a string of predicted Indian flotations that had been intended to cement the county’s position as a top desired destination for tech commence-ups after the US and China.

“The fear for all of us is does this impression the broader India tech sentiment? 1 terrible offer and one occasion of bad judgment can upset the apple cart,” mentioned the head of equity capital marketplaces for India at 1 western financial institution. “Valuation is likely to be very challenging.”

MobiKwik, an Indian fintech business, has delayed its IPO initially scheduled for November, declaring this 7 days that it will “list at the correct time”.

Ashneer Grover, the co-founder of fintech BharatPe, said Paytm had “spoiled” the Indian sector. “Nothing can appear in this sector,” he explained to the web site Moneycontrol.

Sandeep Murthy, a associate at financial investment group Lightbox in Mumbai, stated there may possibly be “some time period of cooling off” in fintech listings right until early up coming 12 months but argued that it was “natural”.

Indian tech organizations have elevated a document $5bn by listings this calendar year, in accordance to Dealogic, about 10 moments last year’s total. The country has emerged as a foremost beneficiary of a sustained regulatory crackdown on tech firms in China that prompted intercontinental…

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