With Zomato advancing its public listing by a week on the back of strong investor demand for India’s new-age technology companies, others have also expedited plans to file draft share sale prospectus with the market regulator.
Online cosmetics retailer Nykaa, insurance aggregator Policybazaar and payments firm Paytm are planning to file their respective draft prospectus this month, three people aware of the plans said, requesting anonymity.
“Nykaa is likely to file its DRHP around 17 July and Policybazaar will file its prospectus around 20 July,” said one of the two people cited above.
Reuters reported on Monday that One97 Communications Ltd, the parent of Paytm, will file a draft prospectus as early as 12 July for a domestic initial public offering (IPO) that will seek to raise $2.3 billion.
“The response that Zomato received when it went on investor roadshows has enthused others to speed up their plans and so these companies are looking to file their draft prospectus at the earliest with the Securities and Exchange Board of India (Sebi) so that they have the regulators nod in place soon enough to launch their deals before the end of the year,” said the second person cited above.
Zomato, which will be the first major new-age technology firm to list on the domestic bourses, will open its ₹9,375-crore IPO on 14 July.
Mint reported last month that Nykaa plans to go public later this fiscal at a valuation of $4.5 billion, a sharp rise from its earlier valuation of more than $3 billion, as the beauty retailing startup benefits from a marked shift towards online sales during the pandemic.
Nykaa, founded by former investment banker Falguni Nayar, will keep the size of the public offering unchanged at between $500 million and $700 million, Mint had reported. Nykaa has appointed investment banks Kotak Mahindra Capital, Morgan Stanley, Bank Of America, Citibank and ICICI Securities to manage its IPO, said the third person cited above.
Founded in 2012, Nykaa is India’s top women-centric online marketplace with about 15 million registered users as it caters to 1.5 million orders a month. The platform has been able to carve out a niche for itself via strong focus on the beauty and personal care segment, which differentiates it from horizontal e-commerce companies like Flipkart and Amazon.
Mint reported in February that Policybazaar, the country’s largest insurance aggregator, is set to list on the bourses via a ₹4,000-crore IPO, which will see it dilute a 15% stake while seeking a valuation of almost $3.5 billion. An email sent to Nykaa did not elicit a response, while a spokesperson for Policybazaar declined to comment.
Several other technology companies such as online travel portal Ixigo, travel and hospitality B2B service provider Rategain and online pharmacy PharmEasy are also working on their IPOs.