Flood of Tech IPOs Expected to Hit the Market Post-Elections
Investors are eagerly anticipating a wave of initial public offerings (IPOs) set to hit the market after next year’s general election. While this week will see five IPOs, including the highly anticipated Tata Technologies Ltd., a more intriguing group of at least nine new-age tech startups is preparing to make their offerings, with the potential to raise over $2 billion in 2024.
The last time India experienced a similar rush of tech-led startups to the market was in 2021, when companies like Nazara Technologies, Zomato, Policybazaar, and Nykaa went public. Pranav Haldea, managing director of Prime Database Group, noted that on the supply side, many companies are considering IPOs as a preferred route to provide their investors with an exit. However, the upcoming state elections’ verdict and the outcome of the general election are expected to impact overall market sentiment and the primary market.
The results of state elections starting in December will guide sentiment and offer insight into how the general election will unfold. According to experts, there may be a small window before the general elections for companies that have already filed documents with the Securities and Exchange Board of India (Sebi) and secured approval to exploit.
Several companies, such as Razorpay and Groww, are working to change their domicile to India ahead of their listing. Ola Electric Mobility recently announced its conversion into a public company as it prepares for an IPO. The company is aiming to launch its IPO before March, with Goldman Sachs and Kotak Mahindra Capital Co. among the firms managing the issue. However, meeting the March deadline may prove challenging, and the IPO may be postponed until after the elections.
FirstCry and Swiggy, which have already appointed bankers, are likely to file draft papers in the first quarter of 2024. Oyo, which has filed its documents twice, is still awaiting Sebi’s approval. Meanwhile, companies like OfBusiness, Infra.Market, Lenskart, and PhonePe are in discussions with bankers about their prospective IPO plans but have not yet hired them.
As the market eagerly awaits these upcoming tech IPOs, the impact of the elections on market sentiment and the subsequent timing of these offerings remain key points of interest for investors and industry experts alike.