Start-ups’ IPOs worth Rs 30,000 crore in pipeline: Sebi

NEW DELHI:  The Indian start-up ecosystem continues to line-up for listing their shares at exchanges. Market regulator Securities and Exchange Board of India (Sebi) in its latest bulletin has said that IPO filings of start-ups with Sebi at present show a pipeline of around Rs 30,000 crore.

The bulletin also says that start-ups have already raised Rs 15,000 crore through Initial Public Offers (IPOs) in the last 18 months.  “Growing number of unicorns in the start-up eco system is a testimony of the new-age tech companies coming of age in our economy. These companies often follow a unique business model focusing more on rapid growth than immediate profitability. Recent filings and successful public offerings of such companies is an important landmark in further evolution of our equity markets,” says Sebi in its bulletin.

Of the upcoming large IPOs, Paytm is aiming to raise Rs 18,300 crore, the biggest share sale offer ever in the country. Paytm IPO is likely to be open for subscription on 8 November and is likely to get listed by mid-November. The price band has been kept in the range of Rs 2,080-2,150.

Delhivery, a logistics and e-commerce supply chain company, has also filed preliminary papers with Sebi to raise Rs 7,460 crore through an initial public offering (IPO).  Nykaa, an e-commerce company, recently came to the primary market with an intention of raising Rs 5,350 crore and the issue got 80 times subscribed. The IPO is likely to be listed later this month.

Another start-up Policy Bazaar recently offered its share to investors to raise over Rs 5,600 crore. The company’s IPO has so far got 10 times subscription. Among the large start-ups that got listed on the exchanges recently include Zomato, which raised Rs 9,375 crore earlier in July this year. Zomato IPO got subscribed 38 times and got listed with at Rs 116 a share, a 53% premium on its offer price of Rs 76.

Meanwhile, Sebi has said that after the onset of the pandemic, individual investors’ participation in stock markets has increased by leaps and bounds.  “In 2019-20, on an average, 4 lakh new Demat accounts were opened every month. This tripled to 12 lakh per month in 2020-21 and has further increased to around 26 lakh per month in the current financial year,” said the market regulator in its latest bulletin.

According to Sebi, individuals’ average share in daily cash market turnover was 39% in 2019- 20. It increased to around 45% in 2020-21 and 2021-22. Holdings of individuals in listed companies have increased from 8.3% at the end of Q1 2019-20 to 9.3% at the end of Q1 2021-22. In terms of SIP figures, while around 51-53 lakh SIPs were added during the last two financial years, around 59 lakh have been added during the first five months of this financial year itself.

Cashing in on listing

Start-ups have already raised Rs 15,000 crore through Initial Public Offers in the last 18 months

Paytm aims to raise Rs 18,300 crore, the biggest share sale offer ever in the country

Delhivery has also filed papers with Sebi to raise Rs 7,460 crore through an initial public offering

Individuals’ average share in daily cash market turnover increased from 39% in 2019- 20 to around 45% in 2020-21 and 2021-22

Holdings of individuals in listed companies increased from 8.3% at the end of Q1 2019-20 to 9.3% at the end of Q1 2021-22

While 51-53 lakh SIPs were added during the last two financial years, around 59 lakh added during the first five months of this financial year