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Moneycontrol Pro Panorama | Why startups are in a tearing hurry to list

In today’s edition of Moneycontrol Pro Panorama: Paytm smashes IPO record, Zomato’s sting in the tail, reflation trade hits a bump, the long wait for herd immunity, Wipro makes a point, Tatva IPO, Weekly Tactical, Ola on a bold ride, crypto’s moment of truth and more

July 16, 2021 / 03:46 PM IST

Dear Reader,

The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of.

The startups who have decided to go public are not wasting any time, for sure. Even before the Zomato offer closes today, One97 Communications (Paytm) has filed its draft offer document with the market regulator. The size of the issue, at Rs 16,600 crore, is even bigger than the Zomato one seeking to raise, half of which will go to selling shareholders and the rest to the company.

The rush to get listed coincides with buoyant stock markets that are looking past the aftereffects of the pandemics, as monetary and fiscal stimulus by global central banks and governments has supported growth and created ample liquidity. While a tightening or even withdrawal of these measures is on the table in the distant future, now’s the time for those seeking to raise money and not waste time.

And that’s exactly what the technology companies going public are doing. The rush to invest could mean several investors not getting their allotment and then jumping into the fray post-listing. That could stretch already stretched valuations further, but it’s a buy first and ask questions later kind of an environment.

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When governments and central banks become less benevolent, then investors may become more questioning about whether the price matches performance. For instance, the RBI monthly report points to confidence in the reflation trade getting dented. It also does not help that the pace of vaccination, our armour against another wave of COVID-19, is running below the desired level, as pointed out by our Herd Immunity Tracker. Bookmark it to get a weekly update of how we are progressing on this front.

Software companies have been reporting good sales growth in the quarter. Wipro’s results were a pleasant surprise and the new CEO’s bold bets and focus on growth are paying off, is our research team’s take on its results. While the stock is valued at a discount to the sector bellwether, do read their take to know what could lead to a narrowing of this gap.

It’s not just frontline IT companies that are wearing broad smiles. L&T’s infrastructure businesses may be feeling the impact of the pandemic on capital investments—both by the government and the private sector—but its software units are doing well. Today’s edition gives you a peek into how Mindtree, L&T Infotech and L&T Technology Services are doing their bit to keep the growth flag flying. Do read.

Investing insights from our research team:

Tatva Chintan Pharma Chem: Is the speciality chemical IPO worth applying?

Weekly Tactical Pick: Tata Motors

What else are we reading today?

Chart of the Day: Will startup listings draw global investor attention?

Bhavish Aggarwal is staking his entrepreneurial future on an electric scooter

Restaurants try to sting Zomato

What performance of food delivery companies post-listing foretells about Zomato

Between inflation and growth, the latter remains taller risk

Crypto world faces a fateful choice (Republished from the FT)

Technical Picks:  GMRInfosysUPL and HDFC AMC (These are published every trading day before the markets open and can be read on the app)

Ravi Ananthanarayanan

Moneycontrol Pro

 
Ravi Ananthanarayanan

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