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Business Standard
23-05-2025
- Business
- Business Standard
Secondary market rally triggers IPO market revival hopes, say analysts
Upcoming IPOs: A rocky, but steady recovery in the secondary markets, has put wind in the sails of India's primary market. With the worst for the stock markets, in terms of Indo-Pak war and Donald Trump's tariffs, likely on the backburner, over 60 companies are ready to launch their initial public offerings (IPOs) in the coming months. Data from PRIME Database shows that 66 companies have market regulator Securities and Exchange Board of India's (Sebi's) approval to bring IPOs worth ₹1.02 trillion. Among these, National Securities Depository (likely IPO size ₹3,000 crore), JSW Cement (₹4,000 crore), Manjushree Technopak (₹3,000 crore), LG Electronics India (₹15,000 crore), Credila Financial Services (₹5,000 crore), and Veritas Finance (₹2,800 crore) are some of the marquee names waiting to go public. Analysts feel a meaningful revival in the primary markets is possible over the next six-to-eight months if the secondary markets continue to stabilise. "If the broader market maintains its current levels or trends upward, investor sentiment could improve, encouraging more IPOs. Overall, a stable and positive secondary market is essential for a strong revival in the primary market. If these conditions persist, the outlook appears promising for investors in the coming months," said Ashok Jain, chairman, Arihant Capital Markets. On the bourses, the BSE Sensex and the Nifty50 have bounced back 12 per cent and 12.6 per cent from their respective April lows, while the broader Nifty MidCap and the Nifty SmallCap indices have recouped 18 per cent and 20 per cent, respectively. This has had a rub-off effect on the IPO market where mainline offers are beginning to line up after months of dry spell. Consider this: While the months of January and February 2025 saw 10 mainboard IPOs hitting the Street, March saw nil IPOs, and April saw just one company (Ather Energy) launching its IPO. A similar trend was observed among companies filing for Sebi's approval for IPOs. Data from PRIME Database suggests that over 25 companies filed draft red herring prospectuses (DRHPs) with Sebi in January. These applications dropped to 13 in February and 10 in March, before rising to 20 in April. As for May, two mainboard IPOs – Borana Weaves and Belrise Industries – opened for subscription, receiving healthy investor interest. Borana Weaves IPO, for instance, was subscribed 148.78 times in three days, while Belrise Industries has been subscribed over 6x so far. Further, four more mainboard IPOs – Aegis Vopak Terminals, Schloss Bangalore, Prostarm Info Systems, and Scoda Tubes – will go public next week. Analysts said companies that had put their capital raising plans on hold amid worries related to India-Pakistan, began enquiring about market conditions as soon as the ceasefire was announced between the two countries. "There were tariff uncertainties, war related worries, deferral of capex plans, poor demand, and fallen multiples that prevented companies from aggressively following through on equity raising. With many of these issues now largely behind us we expect primary markets to resume very shortly," said R Venkataraman, managing director, IIFL Capital. Overall, 68 companies have filed their offer documents with Sebi and await its approval, including Hero Fincorp (₹3,668.13 crore), HDB Financial Services (₹12,500 crore), Dorf-Ketal Chemicals India (₹5,000 crore), WeWork India Management (₹2,500 crore), PhysicsWallah (₹4,600 crore), Tata Capital (₹20,000 crore), and Prestige Hospitality (₹2,700 crore), as per PRIME Database.
Economic Times
13-05-2025
- Business
- Economic Times
Confused between Swiggy and Zomato? Retail investors, HNIs say: Why not both
Just like Peter Lynch said, 'Invest in what you know'—and for India's retail and high-net-worth investors, that apparently means food, fast. Despite sharp declines in their share prices, both Swiggy and Zomato found themselves on investor menus in Q4 with retail and HNI investors taking big bites out of both companies. ADVERTISEMENT Swiggy, in particular, saw strong appetite from both camps—it was the fourth most-bought stock by retail investors, with a net addition of 2.95 crore shares, translating into a purchase worth Rs 1,148 crore, even though the stock tumbled nearly 39% during the quarter. Among high-net-worth individuals, it ranked second, with HNIs scooping up 1.95 crore shares worth Rs 760 crore, according to data from PRIME Database. Zomato—listed under the name Eternal Ltd.—wasn't far behind. Retail investors added 3.41 crore shares, spending Rs 762 crore, making it the eighth-most bought stock by retail hands. HNIs joined the party too, buying over 1.1 crore shares for nearly Rs 248 crore, despite a 27.5% plunge in the stock's price during the period. Part of the answer lies in familiarity and visibility—consumers are often users of both services, making the leap to shareholders a natural next step. But beyond the Lynch-ian logic, some investors are simply betting that the worst may be behind. Also read | Quick commerce price war: Rivals offering steep discounts to capture market, says Swiggy CFO The Q4 earnings season for Blinkit and Swiggy Instamart came in with few surprises, according to HSBC. Growth was strong at 20% quarter-on-quarter for both. But the surge in sales was matched, and in Swiggy's case, outpaced by a spike in losses. ADVERTISEMENT For every Rs 100 of Gross Order Value (GOV), Blinkit bled Rs 2. Swiggy Instamart, by comparison, was a geyser, losing Rs 18. HSBC noted that Swiggy's cash burn was even more intense than its profit erosion—a worrying sign in a capital-thirsty business. While the current competitive landscape offers a temporary reprieve to both players, HSBC warns that the battlefield could get crowded again in the second half of 2025 and into 2026. That means investors hoping for near-term profitability might need to hold their breath for another 12 months. Until then, the focus must shift to defending market share—even if margins take a backseat. ADVERTISEMENT If Blinkit could maintain its market share, stock is unlikely to correct much as well, HSBC noted, adding that the next few quarters could see both firms trying to wring more out of their new stores, hinging heavily on how well they retain recently acquired QC business, HSBC adds, is currently trading at a 60% discount to Eternal's Blinkit. Despite this, the brokerage prefers Eternal, citing cash burn concerns and competitive pressure at Swiggy. HSBC has trimmed its QC margin forecasts for both, slashing Swiggy's target price to Rs 350 from Rs 385. For Eternal, it maintains a Buy with a target price of Rs 280. ADVERTISEMENT Even Swiggy's now expects to hit contribution break-even in 3–5 quarters, a delay from its earlier December 2025 a result, Jefferies has shaved its target price on Swiggy from Rs 400 to Rs 380, citing a higher-than-expected EBITDA loss outlook for FY26–27. The brokerage flagged that persistently high competitive intensity will not only keep margins under pressure but also inject fresh volatility into short-term performance. ADVERTISEMENT For Zomato, the Q4 earnings season brought a wave of downgrades, with JM Financial reporting the sharpest EPS cut among Nifty companies of around 15% for Eternal. That's largely due to rising competitive intensity in the quick commerce (QC) space and weakness in the 'Going-out' segment, where margin expansion is now expected to be far more once a promised land in the near horizon, now seems a bit further Stanley, once a cheerleader, has trimmed its price target on Zomato to Rs 320, citing reduced valuations in both food delivery and QC. J.P. Morgan has slashed its target too, from Rs 340 to Rs shares ended Monday's session 6% higher at Rs 240 while Swiggy also rallied over 2% to end at Rs 320.5. For now, investors are ordering both. The real question is, which one delivers better returns? (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
13-05-2025
- Business
- Time of India
Confused between Swiggy and Zomato? Retail investors, HNIs say: Why not both
Just like Peter Lynch said, 'Invest in what you know'—and for India's retail and high-net-worth investors, that apparently means food, fast. Despite sharp declines in their share prices, both Swiggy and Zomato found themselves on investor menus in Q4 with retail and HNI investors taking big bites out of both companies. Swiggy, in particular, saw strong appetite from both camps—it was the fourth most-bought stock by retail investors , with a net addition of 2.95 crore shares, translating into a purchase worth Rs 1,148 crore, even though the stock tumbled nearly 39% during the quarter. Among high-net-worth individuals , it ranked second, with HNIs scooping up 1.95 crore shares worth Rs 760 crore, according to data from PRIME Database. Zomato—listed under the name Eternal Ltd.—wasn't far behind. Retail investors added 3.41 crore shares, spending Rs 762 crore, making it the eighth-most bought stock by retail hands. HNIs joined the party too, buying over 1.1 crore shares for nearly Rs 248 crore, despite a 27.5% plunge in the stock's price during the period. Why the rush when both stocks have been bleeding? Part of the answer lies in familiarity and visibility—consumers are often users of both services, making the leap to shareholders a natural next step. But beyond the Lynch-ian logic, some investors are simply betting that the worst may be behind. Also read | Quick commerce price war: Rivals offering steep discounts to capture market, says Swiggy CFO The Q4 earnings season for Blinkit and Swiggy Instamart came in with few surprises, according to HSBC. Growth was strong at 20% quarter-on-quarter for both. But the surge in sales was matched, and in Swiggy's case, outpaced by a spike in losses. For every Rs 100 of Gross Order Value (GOV), Blinkit bled Rs 2. Swiggy Instamart, by comparison, was a geyser, losing Rs 18. HSBC noted that Swiggy's cash burn was even more intense than its profit erosion—a worrying sign in a capital-thirsty business. While the current competitive landscape offers a temporary reprieve to both players, HSBC warns that the battlefield could get crowded again in the second half of 2025 and into 2026. That means investors hoping for near-term profitability might need to hold their breath for another 12 months. Until then, the focus must shift to defending market share—even if margins take a backseat. If Blinkit could maintain its market share, stock is unlikely to correct much as well, HSBC noted, adding that the next few quarters could see both firms trying to wring more out of their new stores, hinging heavily on how well they retain recently acquired customers. Swiggy's QC business, HSBC adds, is currently trading at a 60% discount to Eternal's Blinkit. Despite this, the brokerage prefers Eternal, citing cash burn concerns and competitive pressure at Swiggy. HSBC has trimmed its QC margin forecasts for both, slashing Swiggy's target price to Rs 350 from Rs 385. For Eternal, it maintains a Buy with a target price of Rs 280. Even Swiggy's now expects to hit contribution break-even in 3–5 quarters, a delay from its earlier December 2025 target. As a result, Jefferies has shaved its target price on Swiggy from Rs 400 to Rs 380, citing a higher-than-expected EBITDA loss outlook for FY26–27. The brokerage flagged that persistently high competitive intensity will not only keep margins under pressure but also inject fresh volatility into short-term performance. For Zomato, the Q4 earnings season brought a wave of downgrades, with JM Financial reporting the sharpest EPS cut among Nifty companies of around 15% for Eternal. That's largely due to rising competitive intensity in the quick commerce (QC) space and weakness in the 'Going-out' segment, where margin expansion is now expected to be far more measured. Profitability, once a promised land in the near horizon, now seems a bit further away. Morgan Stanley, once a cheerleader, has trimmed its price target on Zomato to Rs 320, citing reduced valuations in both food delivery and QC. J.P. Morgan has slashed its target too, from Rs 340 to Rs 290. Eternal shares ended Monday's session 6% higher at Rs 240 while Swiggy also rallied over 2% to end at Rs 320.5. For now, investors are ordering both. The real question is, which one delivers better returns? ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) ETMarkets WhatsApp channel )
Economic Times
12-05-2025
- Business
- Economic Times
India's slowing IPO market a healthy reset, not a setback
Live Events India's IPO market, which became the world's second largest in 2024, is now entering a phase of healthy recalibration. A combination of global economic concerns, shifting investor risk appetite and geopolitical uncertainty has led companies to reassess listing timelines and approach public markets more thoughtfully. According to PRIME Database, mainboard IPOs dropped from 26 in Q2 FY25 and 29 in Q3 to 9 in Q4. Year-to-date, IPO activity is down 58%, and total fundraising across listing platforms has declined by 18%.This isn't a setback; it's a natural part of the market cycle. Periods of pause create space to reset, refocus and quietly back the next wave of public winners. In buoyant markets, IPOs become a symbol of exuberance. Late-stage deals attract aggressive capital, with PE and VC firms chasing future listings at premium valuations. It becomes a seller's market, where founders and early backers expect exits at rich when that window tightens, as it has now, the landscape shifts. Capital turns selective, public valuations correct and liquidity tightens. For late-stage companies built around rapid listings and lofty growth assumptions, this is a moment of reckoning - one that restores discipline and reprices shift, however, is also a turning point - not just for public markets but for how private capital shapes India's growth. As IPO exits stall, attention is turning early investors, angels, VCs and even Esop holders, the need for liquidity remains. And, increasingly, it's the private market - especially secondaries - that's providing the release valve. In 2024, private equity and VC firms invested $56 bn in India, signalling a shift toward private deployment. What's different now is the growing use of secondaries and continuation vehicles - tools that help unlock liquidity and reprice fewer companies going public, buyers now have access to strong businesses at more attractive valuations. In response, new structures are gaining traction: secondary transactions offering clean exits, continuation funds supporting maturing assets, and opportunity vehicles designed to re-enter quality businesses at reset prices. These aren't stopgaps, they're part of a more sophisticated private capital seizing this moment requires discipline. Over-allocating to illiquid assets can limit flexibility, making it harder to capture emerging opportunities in both public and private markets. What's needed is a thoughtful, balanced approach that protects near-term liquidity while building long-term investors leaning into private markets, quality should be the north star: resilient business models, strong cash flows and credible paths to profitability. Diversification across sectors, geographies and stages is key to managing risk. And perhaps, most importantly, partnering with experienced private market managers can be critical in navigating dislocation and surfacing swings aren't a cue to retreat but a call to rethink and reallocate. Investors who act with intention, stay patient and remain anchored in fundamentals will be the ones best positioned when momentum the real edge isn't in choosing between public or private - it's in knowing how to blend strategically, flexibly and for the long haul.
Time of India
12-05-2025
- Business
- Time of India
India's slowing IPO market a healthy reset, not a setback
India's IPO market, which became the world's second largest in 2024, is now entering a phase of healthy recalibration. A combination of global economic concerns, shifting investor risk appetite and geopolitical uncertainty has led companies to reassess listing timelines and approach public markets more thoughtfully. According to PRIME Database, mainboard IPOs dropped from 26 in Q2 FY25 and 29 in Q3 to 9 in Q4. Year-to-date, IPO activity is down 58%, and total fundraising across listing platforms has declined by 18%. #Operation Sindoor The damage done at Pak bases as India strikes to avenge Pahalgam Why Pakistan pleaded to end hostilities Kashmir's Pahalgam sparks Karachi's nightmare This isn't a setback; it's a natural part of the market cycle. Periods of pause create space to reset, refocus and quietly back the next wave of public winners. In buoyant markets, IPOs become a symbol of exuberance. Late-stage deals attract aggressive capital, with PE and VC firms chasing future listings at premium valuations. It becomes a seller's market, where founders and early backers expect exits at rich multiples. But when that window tightens, as it has now, the landscape shifts. Capital turns selective, public valuations correct and liquidity tightens. For late-stage companies built around rapid listings and lofty growth assumptions, this is a moment of reckoning - one that restores discipline and reprices risk. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Treatment That Might Help You Against Knee Pain Knee pain | search ads Find Now Undo This shift, however, is also a turning point - not just for public markets but for how private capital shapes India's growth. As IPO exits stall, attention is turning inward. For early investors, angels, VCs and even Esop holders, the need for liquidity remains. And, increasingly, it's the private market - especially secondaries - that's providing the release valve. In 2024, private equity and VC firms invested $56 bn in India, signalling a shift toward private deployment. What's different now is the growing use of secondaries and continuation vehicles - tools that help unlock liquidity and reprice opportunity. Live Events With fewer companies going public, buyers now have access to strong businesses at more attractive valuations. In response, new structures are gaining traction: secondary transactions offering clean exits, continuation funds supporting maturing assets, and opportunity vehicles designed to re-enter quality businesses at reset prices. These aren't stopgaps, they're part of a more sophisticated private capital playbook. But seizing this moment requires discipline. Over-allocating to illiquid assets can limit flexibility, making it harder to capture emerging opportunities in both public and private markets. What's needed is a thoughtful, balanced approach that protects near-term liquidity while building long-term value. For investors leaning into private markets, quality should be the north star: resilient business models, strong cash flows and credible paths to profitability. Diversification across sectors, geographies and stages is key to managing risk. And perhaps, most importantly, partnering with experienced private market managers can be critical in navigating dislocation and surfacing value. Market swings aren't a cue to retreat but a call to rethink and reallocate. Investors who act with intention, stay patient and remain anchored in fundamentals will be the ones best positioned when momentum returns. Because the real edge isn't in choosing between public or private - it's in knowing how to blend strategically, flexibly and for the long haul.
