The catalyst, in a word, is Zomato Ltd. The food-delivery startup went public in July
The market for initial public offerings in India is turning into a feeding frenzy.
The amount of money raised in IPOs this year has reached $8.8 billion, already surpassing the totals of the past three years though it’s only August. At the current pace, 2021 would exceed the all-time record of $11.8 billion. Founders, bankers, lawyers, and advisers are racing to cash in on fervent demand for fresh public offerings.
The catalyst, in a word, is Zomato Ltd. The food-delivery startup went public in July and, despite deep losses and mediocre prospects for profitability, shares have soared more than 70%. That has fueled the idea that similarly, profit-challenged startups could find a strong reception from investors.
Oyo Hotels & Homes Pvt, a long-troubled lodging giant, started work last week on its draft prospectus and aims to file in October, according to people familiar with the matter. The ride-hailing leader Ola and fintech startup Pine Labs Pvt have also begun talks with investment bankers, according to other people aware of the situation.
“India is definitely the star of the show – that is the new phenomenon,” said Udhay Furtado, co-head of Asia equity capital markets at Citigroup Inc., the lead foreign bank in Asia IPO league tables so far this year. “Zomato really opened people’s eyes to India and now we have all these privately funded unicorns coming to the public market.”
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