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Four listed unicorns Nykaa, Zomato, Paytm and Policybazaar witnessed a massive decline in their valuation during 2021, as per the Burgundy Private Hurun India 500 special report. Paytm was the worst performer.
Axis Bank’s Burgundy Private and Hurun India launched an update to the list of 500 most valuable private companies in India. The update was for the period of October 2021- April 2022 to the 2021 Burgundy Private Hurun India 500 list.
According to the list, the value of four listed unicorns - Nykaa, Zomato, Paytm, and Policybazaar declined by ₹1,61,007 crore during the review period.
Paytm was the worst performer having lost 63% ( ₹63,666 crore) to touch a value of ₹37,724 crore, as per the updated list.
It needs to be noted that after the historic IPO, the shares of Paytm crashed 27% on the first day of trading (18 November 2021).
On the other hand, the only listed unicorn Delhivery performed well during the period and gained 65% ( ₹14,495 crore) to touch a value of ₹37,095 crore.
Anas Rahman Junaid MD and Chief Researcher, Hurun India said, "Value is perhaps the best way to measure a company’s performance since value takes into account not just the current performance of a company but also its future potential. These companies represent the biggest opportunity for tax revenues, quality employment, and industry leadership."
"Hurun is closely tracking the performance of tech companies like Paytm where valuations have gone down sharply," Anas added.
As per the report, the value of the top 500 companies in India increased marginally by 2% to ₹232 lakh crore from ₹221 lakh crore as of October 30, 2021. The total value of 219 companies declined during the review period. Ten companies remained flat and 36 dropped out from the list.
With a value of ₹18.9 lakh crore, Reliance Industries is India’s most valuable company, followed by Tata Consultancy Services (TCS) with ₹12.9 lakh crore and HDFC Bank with ₹7.7 lakh crore.
Further, as per the list, the total value of the top 10 companies remains flat at ₹71.8 lakh crore ($940 billion), equivalent to 37% of India’s GDP and 31% of the total value of the Burgundy Private Hurun India 500. Six are headquartered in Mumbai.
Under the top 10 most valued companies list, Adani Group Companies made the maximum gain during the review period and surpassed all others by a huge margin. In just six months Adani Green moved up the ranking –from 16th to 6th spot.
The nine companies in the Adani Group have a combined value of ₹17.6 lakh crore and constitute 7.6% of the total value of 500 top companies. The Adani Group companies in the review period increased their value by 88.1%, as against an increase of just 2% by the top 500 companies.