Oyo Hotels, Delhivery : Due to the steep fall in the stocks of many high profile startups of the country, the enthusiasm for IPOs of technology companies in India seems to be cooling down. Several reputed tech startups like OYO Hotels and logistics provider Delhi have been forced to shelve their listing plans and are rethinking their target valuations. The Economic Times has given this information quoting sources with knowledge of this development. The IPO of both the companies with the investment of SoftBank Group Corp has been awaited in the market for a long time.
Investors turn their backs on tech issues
India’s booming startup ecosystem is facing valuations just weeks after a record year for IPOs passed. In fact, investors have turned their back on the new tech issue after fintech company Paytm’s weak listing as well as sluggish performance by e-commerce operators Zomato Ltd. and Nykaa. In view of the loss to the investors, the regulators have also increased the strictness on the companies bringing IPO, which is delaying the issue.
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Not a big name, profit-return required
Anoop Jain, a managing partner at Orios Venture Partners, an early stage investor, said, “Investors are not attracted by big and well-known names. They want a path where there is profit and return, not hustle and bustle.”
Regulator inquiry a normal process
An Oyo spokesperson said via email that it is a normal practice for the regulator to inquire about the clarification of preliminary IPO filings. He said, “Our bankers are actively working with them. We can’t comment specifically on that.” However, Delhivery declined to comment on this.
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Delhivery postpones IPO
Some sources said Delhivery had postponed its nearly $1 billion IPO for the fiscal year starting in April. He said that the company is also reviewing its listing plan after the stock market regulator’s displeasure over the plan to sell a significant number of shares to investors in the IPO. Along with SoftBank, the Carlyle Group Inc-invested logistics startup had earlier planned to list by March.
OYO’s ownership structure is under scrutiny and it has suffered a lot after submitting its preliminary IPO documents last year. The company is currently facing questions from the regulator.
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