THE RESURGENCE OF STARTUP IPOS FROM ITS LULL

THE RECENT UPSWING IN THE BROADER INDIAN EQUITY MARKET HAS PLAYED A PIVOTAL ROLE IN THE REVIVAL, SAY EXPERTS

- S SHANTHI

The IPO (initial public offering) market seems to have emerged from its lull as more and morestartups are now going public or filing DRHP. The new-age tech stocks, such as Zomato, Paytm, Policybazaar, Nazara, and Delhivery, have experienced a significant upward movement in their performance. According to experts, while venture capital investments have slowed down, the IPO space is looking good which is encouraging startups to explore further. The current successful listing of ideaforge has further strengthened the scope of other startups going the IPO way. On July 7th, Mumbai-based drone manufacturer ideaForge's shares made a successful debut in the secondary market listing at INR 1,305.1 apiece on BSE. "The secondary markets have shown strong buoyancy, with Indian and global stocks reaching all-time highs, instilling confidence in potential IPO issuers. The primary market tends to follow stock market trends, and the current bullish sentiment is encouraging companies to take advantage of higher valuations," said Ankur Mittal, Partner, Physis Capital.

WHY THE UPTICK

The resurgence is being looked at as a promising trend, offering opportunities for startups seeking funding and early backers looking for high returns. But, what has led to this revival?