Indian Tech-Startups are Making Stellar IPO Debuts Amidst the Pandemic

Sujith Vasudevan, Assistant Editor, CIO Insider

One of the many things that the pandemic has made us realize is the diminished disparity between the real world and the digital world. While the real world continues to suffer from the virus, the digital world is having a field day, making many of the technology organizations thrive forward. This has also been a tailwind to the companies’ plans to register their initial public offering (IPO). Over the past weeks, the country has witnessed the stellar IPO debuts of home grown companies. Let’s look into some of them.

Happiest Minds
An IT services company based out of Bangalore, Happiest Minds made its IPO offer on September 7th, and closed it two days after, on 9th. The prices were fixed at Rs.165-166 per equity share, implicating an upper end offering values of Rs.702 crore. The company indeed made a stellar debut in the stock market, achieving a premium of 110.84% from its initial share price, listing at Rs.350 per share. The ₹702 crore IPO was subscribed 150.98 times during the sale that ended on 9th of September, making it one of the most successful IPOs of the decade. The company, which was founded in 2011 by Ashok Soota, traded with the symbol HAPPSTMNDS.

Route Mobile
Founded in 2004 by Rajdip Gupta, Route Mobile is one of the leading Cloud Communications Platform service providers in the country. It offers enterprises, MNO’s & OTT players with Communication Platform as a Service (CPaaS) & SMS firewall solutions. Route Mobile was listed with the symbol ROUTE. The company’s IPO achieved 105 percent premium over its issue price.

The ₹600-crore public offer was set for an issue price of Rs.350 per equity share, and the shares underwent an explosion in the market, hiking by over 100 percent to hit Rs.725 per equity share. Manifesting huge interest from investors, the IPO of Route Mobile was subscribed almost 75 times, receiving bids for over 89 crore shares, while the total issue size was 1.21 crore shares.

On the other hand, many of the Indian startups are fast-tracking their plan to go public by the next year. These companies include:

The Indian companies that prepare their IPO recipes for the near future include edtech giant BYJU’S

Right after Info Edge, which holds the largest 22.2 percent share in Zomato, divulged that the Indian food delivery giant has completed a funding round of $160 million, Deepinder Goyal (Founder & CEO, Zomato) informed Zomato employees about the company’s plans for IPO by the first half of 2021. As per reports, in an email to his employees, Goyal wrote, “Our finance/legal teams are working hard to take us to IPO sometime in the first half of next year. We hope to create a lot of value for our current employees who have Esops sometime in the next year.” Founded by Deepinder and Pankaj Chaddah, the Gurugram-based Zomato came into existence in 2008. The company is currently home to 5,000+ employees, while offering information, menus and user-reviews of restaurants as well as food delivery options from partner restaurants in select cities. Zomato is said to have eight crore (80 million) monthly active users on its platform. The startup is valued at $3.3 billion, while its biggest rival Swiggy is valued at $3.6 billion.

MobiKwik, an indigenous fintech company has recently announced its plan to go in for Initial Public Offerings by 2022. The company, which provides mobile phone based payment solutions and a digital wallet, was founded in 2009 by Bipin Preet Singh and Upasana Taku. A few days back, MobiKwik also announced elevating its SVP Chandan Joshi as Co-Founder, who joins the original founding team, along with its IPO plans. MobiKwik published its IPO plans in a statement that said, “Having delivered three straight years of greater than 100% revenue growth amid stiff competition, we have demonstrated strong execution and financial discipline. As a first step to preparing the company for IPO, we have started organizing our top deck with this appointment.”

Well, these names are just the tip of the ice berg. The Indian companies that prepare their IPO recipes for the near future include edtech giant BYJU’S. After it recently bagged another $500 million in a fresh funding round, the founder Byju Ravindran had divulged his plans to go in for IPO within the next couple of Years. The companies in the IPO queue also include leading payments platforms PhonePe and Paytm.

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