<p>Five of the most-hyped technology initial public offerings in India over the past 16 months have floundered since listing, shedding more than $18 billion in value.</p>.<p>Concerns over valuations and rising global rates have taken the biggest toll on the parent of payments firm Paytm. The other victims include delivery startup Zomato, the owner of beauty e-retailer Nykaa, logistics firm Delhivery and the operator of online insurance marketplace Policybazaar.</p>.<p>Indian IPOs raised a record $18 billion in 2021 on government efforts to foster startups combined with easy-money policy and a surge in retail trading during the pandemic. But investors have since dumped high-profile tech shares, even as the broader Indian stock market has outperformed global peers and scaled new peaks.</p>.<p>“Valuations of these companies were not supported by fundamentals and the balance sheets, and their cash burn was high,” said Arun Malhotra, a portfolio manager with CapGrow Capital Advisors LLP. As large investors curtail their holdings, unlocked shares are adding to supply and this is accelerating the price declines, he said.</p>.<p>Paytm parent One 97 Communications Ltd. plunged as much as 10 per cent Thursday after early investor SoftBank Group Corp. lowered its stake following the end of its IPO lock-up period. Uber Technologies Inc., an early investor in Zomato Ltd., similarly exited the online food-delivery firm in August.</p>.<p>“New investors should not bottom fish in these stocks if the company has no clear path to profitability,” said Abhay Agarwal, a fund manager at Piper Serica Advisors Pvt.</p>
<p>Five of the most-hyped technology initial public offerings in India over the past 16 months have floundered since listing, shedding more than $18 billion in value.</p>.<p>Concerns over valuations and rising global rates have taken the biggest toll on the parent of payments firm Paytm. The other victims include delivery startup Zomato, the owner of beauty e-retailer Nykaa, logistics firm Delhivery and the operator of online insurance marketplace Policybazaar.</p>.<p>Indian IPOs raised a record $18 billion in 2021 on government efforts to foster startups combined with easy-money policy and a surge in retail trading during the pandemic. But investors have since dumped high-profile tech shares, even as the broader Indian stock market has outperformed global peers and scaled new peaks.</p>.<p>“Valuations of these companies were not supported by fundamentals and the balance sheets, and their cash burn was high,” said Arun Malhotra, a portfolio manager with CapGrow Capital Advisors LLP. As large investors curtail their holdings, unlocked shares are adding to supply and this is accelerating the price declines, he said.</p>.<p>Paytm parent One 97 Communications Ltd. plunged as much as 10 per cent Thursday after early investor SoftBank Group Corp. lowered its stake following the end of its IPO lock-up period. Uber Technologies Inc., an early investor in Zomato Ltd., similarly exited the online food-delivery firm in August.</p>.<p>“New investors should not bottom fish in these stocks if the company has no clear path to profitability,” said Abhay Agarwal, a fund manager at Piper Serica Advisors Pvt.</p>
