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If inflation is prolonged, then it’ll start impacting savings products too: MD & CEO, HDFC Life


Rising inflation has emerged as a key concern all across as it eats into disposable incomes of individuals. Vibha Padalkar, MD and CEO, HDFC Life, told Sandeep Singh that if the inflation is prolonged then it will start hurting demand for savings products too. Stating that the premiums should stabilise now, she also called for the regulator to permit life insurance companies to sell health indemnity as that will allow them to offer innovative solutions to customers. Edited excerpts:

How is inflation hurting the industry and what is the impact of interest rates?

Inflation remains a big concern as it has a bigger impact since it eats into the savings and reduces the disposable income. As disposable incomes reduce, customers react by going for slightly smaller cover or by not covering everyone in the family, etc. If you see the industry numbers, the impact is not much as of now. While there has been some impact on term, it is not so much on savings. However, if inflation is prolonged then it will start impacting savings products too.

As for interest rates’ rise, it is reasonably positive for us. Our transmission is faster and we can pass higher annuity rates. However, the volatility in equity markets is a downside. I think that of the other options to save, insurance continues to do well. The saving quantum itself is, however, reducing.

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The industry has witnessed a rise in premium. Do you see it stabilising now?

The premiums have risen mainly for term policies and the rise has been because of pandemic. Even as there is a lot of talk around rise in premiums, I would like to state that the increase in premium over the last 10 years is less than inflation. Reinsurers have suffered huge losses because of pandemic and if they raise the charge, it is difficult not to raise it. I think, it should stabilise now.

How have Covid death claims been for you?

We have settled claims amounting to over Rs 6,000 crore in FY22 but it has now eased off. We settled close to about 4 lakh claims with gross claims of around Rs 6,000 crore and net claims of Rs 4,300 crore. As a sector I would say that even as it was significantly higher, we paid so many claims without looking too much into the clause I believe that money is important if it is timely. For almost all our non-early claims (if the policy has completed 3 years) we paid within 24 hours or max 48 hours.

While this was for saving schemes, it took around 3 months for term policies as we need to check pre-existing etc and physical checks are required to be done by local field investigator.

Are life insurers getting permission to sell health indemnity?

We have been demanding the regulator to allow us to sell health indemnity but it hasn’t been permitted yet. Our point is that worldwide health sits closer with life than with motor. However, for some reason, general insurers in India are selling health whereas life insurers are not allowed to sell it. That is not logical. We used to be allowed to sell health, but it has been taken away.

My limited point is that life insurers have the largest touch points with their branches and network, but you are not alllowing us to sell. I think the focus should be on penetration of insurance and expansion.

As of now, nothing has moved. We even asked the regulator to allow us to distribute, if you don’t allow us to manufacture. Today, banks can distribute insurance but life insurers can’t distribute health. It doesn’t make sense.

We submitted it almost 18 months ago and the regulator has said that they will look at it. I stay hopeful.

When you say innovations are possible, if you are allowed, what could they be?

Innovation can’t happen if one key piece is missing. For example: When someone is young, he needs more life insurance. Suppose a person is paying Rs 60,000 as premium, I would say that until the age of 55 (nearer to retirement) we would give him maximum of life cover. After that, since he would have built savings too, we will reduce the life cover and increase the health cover. However, for the individual, Rs 60,000 premium will stay constant.

As of now we are not allowed to club various products and sell to the customer, unless we tie up with one insurer. But even that is not seamless.

What are the growth areas for the life insurance?

Growth will come with product innovation. Retirement products are another big growth area. As a nation, pension funds as a per cent of GDP is less than 5 per cent while it is more than 100 per cent in the developed world. While it is increasing, it is not at the desired pace.
People need to understand that the risk of an individual running out of money is very real because of increasing longevity.

How will the merger of HDFC Bank and HDFC limited benefit you?

It can only get significantly better. The way I see it is that today HDFC Bank is my largest distributor, but it is not my parent, so once that happens, there will be full alignment. HDFC Bank will become a financial conglomerate and will not just be a bank. It will have everything to do with any financial service products and will be the parent company of all. They will be able to tell the customer that they know them— if they have a home loan but not insurance etc so the advisory will be better.

If customers give their consent that they would like to be serviced as a single customer, they will be treated as a single customer across all HDFC Group products.





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Bharti AXA Life premium income rises 14 pc


Bharti AXA Life Insurance has posted a 14 per cent growth in total collected premium at Rs 2,602 crore in FY22 from Rs 2,281 crore in FY21. Renewal premium grew by 11 per cent and stood at Rs 1,666 crore in FY22. It posted a 25 per cent growth in weighted new business premium (WNBP) to Rs 730 crore from Rs 582 crore last year, outperforming the overall and private industry growth which stood at 16 per cent and 22 per cent respectively. In Q4 FY22, the company witnessed a 14 per cent growth in WNBP compared to the 13 per cent overall and 9 per cent private industry growth observed in the same period.

Despite the challenging macroeconomic environment, the company recorded a surge of 18 per cent in its assets under management at Rs 11,025 crore in FY22 against Rs 9,374 crore in the last fiscal, said Parag Raja, MD & CEO.





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US rate hike fears spook markets


The meltdown in the US markets on Wednesday on fears of aggressive interest rate hikes rattled domestic markets investors, with key indices plunging 2.61 per cent on Thursday. With the sell-off led by foreign investors sending the pivotals crashing, the benchmark Sensex plummeted 1,416.3 points to 52,792.23 and the NSE Nifty fell 430.9 points to 15,809.40.

The rupee, too, extended losses, falling another 10 paise to close at a record low of 77.72 against the US dollar on Thursday, weighed down by a negative trend in domestic equities and unabated foreign fund outflows.

Foreign portfolio investors (FPIs) pulled out another Rs 4,899 crore, taking the total outflows to Rs 42,836 crore in May. Domestic institutions bought stocks worth Rs 3,225 crore but failed to prevent the market slide. The Sensex has fallen 4,183 points in May alone. LIC shares fell by 4.05 per cent to Rs 840.75 as against the IPO offer price of Rs 949. RIL plummeted 2.35 per cent, SBI 2.24 per cent and TCS crashed 5.17 per cent.

Markets plunged sharply lower, pressurised by weak global cues. The meltdown in the US markets, on the fear of aggressive rate hikes, rattled investors and triggered a weak start. “The situation worsened further due to heavy selling in the index majors across sectors wherein IT and metal majors were among the top losers,” Ajit Mishra, VP – Research, Religare Broking Ltd.

The broader indices too traded in sync with the benchmark and lost in the range of 2.5-3 per cent.

Thursday’s fall indicates that bears are in control as the Nifty has completely reversed the recent gains and again reached closer to the March low. In this highly volatile market, investors can focus on sectors like FMCG, pharma, capital goods and manufacturing whose valuations are moderate and reasonable on a long-term basis, said Vinod Nair, head of research, Geojit Financial Services.

On Wall Street, key indices extended losses on Thursday as investors fretted over the impact of surging inflation on US economic growth and corporate earnings. At 2:32 pm ET, the Dow Jones fell 0.5 per cent to 31,318 while the S&P 500 dropped 0.2 per cent to 3,914.





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Day 3: LIC IPO subscribed 1.38 times


The mega initial public offering (IPO) of Life Insurance Corporation (LIC) was subscribed 1.38 times (138 per cent) on Friday with investors putting in bids for 22.36 crore shares as against the public offer of 16.20 crore shares.

LIC policyholders’ quota was oversubscribed 4.01 times (401 per cent) and the employee reserved portion attracted 306 per cent subscription. The retail investors portion was subscribed 123 per cent, according to data revealed by the stock exchanges.

Retail investors bid for 8.53 crore shares as against their quota of 6.91 crore shares. While 2.21 crore shares were allotted for policyholders, there were bids for 8.88 crore shares. Employees bid for 48.33 lakh shares as against their quota of 18.51 lakh shares.

Non-institutional investors have subscribed 76 per cent of their portion while qualified institutional buyers (QIBs) bought 56 per cent of the allotted quota of 3.95 crore shares. Majority of the bids in the QIB quota were put by banks, domestic institutions, insurance companies and mutual funds. QIBs normally put in their bids on the last day of the IPO. Foreign investors put in bids for 8.40 lakh shares.

The issue will close on May 9.

The corporation has priced the IPO in the range of Rs 902-949 per share. It has offered a discount of Rs 60 for policyholders and Rs 45 for retail investors and employees. The size of the IPO was cut from Rs 65,000 crore to Rs 21,000 crore as the Russian invasion of Ukraine and sustained selling by foreign investors sent the stock markets into a tailspin.
LIC mobilised Rs 5,627 crore from anchor investors on Monday. Domestic mutual funds invested Rs 4,002.27 crore, accounting for 71.12 per cent of the total anchor book portion of the IPO. SBI Mutual Fund invested Rs 1,006.89 crore, becoming the largest investor in the anchor book quota.





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Ahead of LIC IPO, Irdai allows insurers to invest more in BFSI


Paving the way for more investment in the financial sector and insurance companies, insurance regulator Irdai has hiked the exposure limit of insurance companies in such companies to 30 per cent.

The hike in the exposure limit comes ahead of the mega IPO of Life Insurance Corporation (LIC). “The Authority in exercise of its powers conferred under the Irdai (Investment) Regulations, 2016, permits all insurers to have exposure to financial and insurance activities (as per section K of NIC classification) up to 30 per cent of investment assets. Accordingly, the limit of 25 per cent of investment assets mentioned in Irdai (Investment) Regulations, 2016 stands revised to a limit of 30 per cent of Investment Assets,” Irdai said in a circular. The Irdai move is expected to allow insurance companies to invest more funds in the LIC IPO, insurance officials said.

Weightage of financial and insurance companies in broader Indian market indices has consistently gone up over the last few years. “Life insurance industry had been seeking an increase in the current 25 per cent sectoral limit on exposure to the BFSI sector. The increase in this limit to 30 per cent will provide the much-needed leeway for the insurance companies to increase their exposure to the sector and bring it closer to the broader market levels,” said Sampath Reddy, chief investment officer, Bajaj Allianz Life.

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“Additionally, they would also be in position to hold a much wider basket of diverse stocks within the sector and participate in the promising Indian growth story through the same,” Reddy said. LIC on Wednesday priced its initial public offering (IPO) in the range of Rs 902-949 per share. LIC IPO will open on May 4 and will close on May 9.

Insurance companies led by LIC, New India Assurance and others are major players in the capital market. LIC is the largest investor in stock markets. LIC booked profit worth Rs 42,862 crore from the sale of investments, mainly from equities, in the first nine months of the fiscal year 2022.

In 2013, Irdai allowed insurance companies to hold up to 15 per cent stake in any company, up from 10 per cent.





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Panda: Irdai looking at review of norms to widen market, may allow micro insurers


The insurance regulator is planning to create a framework to enable new entities to enter the insurance market in India with special outreach to global investors for enhancing foreign direct investment (FDI) into the country.

The Insurance Regulatory and Development Authority of India (Irdai) is reviewing the Rs 100 crore capital, which is the minimum requirement for any new player to begin an insurance venture. “We are thinking of allowing micro insurance player with Rs 10 crore or Rs 15 crore capital which can work in focus areas like a district,” Irdai Chairman Debasish Panda said in his first interaction with media here on Thursday.

Irdai is planning to review a gamut of guidelines and bring down the number of guidelines from around 100 to 10 or 15 guidelines. “Regulations will be principle-based, rather than rule-based. The idea was that the industry has matured enough during its journey spanning more than two decades since its opening up and they know the rule of the game better now,” Panda said.

The Irdai Chairman made it clear that the regulator will be having light regulation and tech-based supervision. Panda, who took over as the Chairman of Irdai last month, after retiring as Secretary, Department of Financial Services (DFS), said the regulations should spur positive development in the industry. In a bid to bring about a cordial relationship between the IRDA and the industry, Panda, who met insurers on April 6 and 7, has assured insurers that there will be regular in-person meetings between CEOs and top IRDA officials in every two months in different parts of the country. The regulator is keen to facilitate the entry of captive insurers, standalone micro-insurers, niche players and regional entities into the insurance space.

It has also proposed to dispense with renewal of registration for insurance intermediaries. It’s also exploring the possibility of launching Bima Mitra on the lines of Bank Mitra to enlarge the scope of distribution with an aim to bringing insurance to every doorstep, he said. He added norms will be reviewed so that insurers can offer allied and value-based services in health insurance like membership in gymnasium.

Irdai has also proposed moving insurance supervision towards outcome based and technology driven that is aligned with international standards. There is also a proposal to rationalise investment norms applicable to insurers, Panda said. Emphasising that there should be new products for millennials, Panda hinted at coming up with new channels of distribution in future. When it comes to overall insurance penetration which includes both life and non-life insurance in India, the insurance penetration was 2.71 per cent in 2001 and has steadily increased to 4.2 per cent in 2020.





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FPO bids: Ruchi Soya told to let investors withdraw


The Securities and Exchange Board of India (Sebi) on Monday asked Ruchi Soya Industries to give the option to the investors in the follow-on public offer (FPO) to withdraw their bids due to “circulation of unsolicited SMSs advertising the issue”.

In a directive to the investment bankers to the issue, the regulator has said prima-facie the contents of the unsolicited SMS appear to be “misleading/fraudulent” and “not in consonance” with Sebi regulations. The window for withdrawal will be available on March 28-30, 2022.

According to the Sebi notice, an SMS is to be sent to all the applicants of the received bids, informing them of the additional window of withdrawal. “A notice to investors shall be issued in the form of an advertisement in the newspapers, which will be issued on March 29 and March 30, 2022,” it said.

The company’s FPO, which closed on Monday, garnered 3.6 times subscription, including 0.9 times of retail subscription. Patanjali Ayurved-owned Ruchi Soya had last week hit the capital market to raise Rs 4,300 crore through its FPO as it aims to become a debt-free company. The price band has been fixed at Rs 615-650 per share. It had raised Rs 1,290 crore from anchor investors ahead of its FPO.

Sebi has in the past cautioned investors that unsolicited messages containing stock tips/investment advice with respect to listed companies are increasingly being circulated through bulk SMS, websites and social media platforms like WhatsApp and Telegram. Such messages are sent to investors and general public usually recommending to deal in specific stocks of listed companies, indicating target prices and giving fraudulent, misleading and false information relating to listed companies, inducing them to deal in these stocks, Sebi had said.

Patanjali, promoted by Baba Ramdev, acquired Ruchi Soya, which is listed on the stock exchanges, through an insolvency process for Rs 4,350 crore in 2019. After the FPO, Patanjali’s holding in Ruchi Soya will come down to about 81 per cent, and the public will hold about 19 per cent. Currently, it owns 98.9 per cent in Ruchi Soya.

The company is into fast-moving consumer goods (FMCG) and fast-moving health goods (FMHG) and owns brands such as Mahakosh, Sunrich, Ruchi Gold and Nutrela. The FPO is to meet Sebi’s requirement of minimum public shareholding of 25 per cent in a listed entity.

Ruchi Soya’s anchor investors include the likes of Aditya Birla Sun Life Mutual Fund, AG Dynamics Funds, Alchemy Capital, ASK MF, HDFC Life Insurance Company, Kotak MF, Quant MF, SBI Life Insurance Company, Societe Generale, BNP Paribas, The Sultanate of Oman Ministry of Defence Pension Fund, UTI MF, Yas Takaful PJSC and UPS Group among others.

The company plans to utilise the net proceeds of the FPO for repayment and/or prepayment of borrowings, funding incremental working capital requirements and general corporate purposes, according to the information provided in the red herring prospectus (RHP).





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Rupee under pressure as FPIs rush to the exit door, pull out Rs 2 lakh crore since October


The ongoing sell-off by foreign portfolio investors (FPIs) has led to withdrawal of over Rs 2,00,000 crore from the domestic stock markets since October last year. The Russia-Ukraine conflict has added to the nervousness of FPIs, already bracing for interest rate hikes by the US Federal Reserve. The FPI pull-out has hit the rupee, with its exchange rate against the dollar falling below the 76 level to 76.16 despite heavy RBI intervention.

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On March 4, FPIs pulled out Rs 7,631 crore from the stock markets, taking the total outflows to Rs 18,614 crore in the last three sessions of March as Russia intensified the attack on Ukraine and oil prices soared. This outflow has come after withdrawals of

Rs 45,720 crore in February and Rs 41,346 crore in January. With this, FPIs have pulled out

Rs 2,06,646 crore (excluding FPI investments in IPOs) since October 1, 2021.

If the situation in Ukraine worsens and FPI sales continue, the rupee will cross the 77 level against the dollar in the coming days, analysts said. While banks have been purchasing dollars to facilitate FPI pull-out, the RBI has been selling dollar from its forex kitty to salvage the rupee, said a banking source.

During the week ended February 25, India’s foreign currency assets declined by $ 2.228 billion. “The Russia-Ukraine conflict is hurting Indian rupee, bonds and equities via three channels: oil prices, US dollar Index and global equity prices,” said a Kotak Securities report.

Analysts said there could be a further temporary shock if things worsen more in Europe or, for that matter, a new front opens up in Asia. While the rupee is likely to remain under pressure, the RBI with its forex kitty of $631 billion will be able to prevent a big slide in the currency.

However, domestic institutional investors (DIIs), led by LIC, mutual funds and insurance companies, have been stepping up their purchases, absorbing most of the FPI sales. “There is a tug-of-war going on between FPIs and DIIs,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Countering the FPI strategy, DIIs have invested Rs 12,599 crore in March 1-4, adding to their total investments of Rs 1,42,872 crore since October 2021. DIIs invested a record amount of Rs 42,084 crore in February, their highest monthly investment since they put Rs 55,595 crore in March 2020 when Covid pandemic hit the country.

Despite a correction of around 13 per cent from the peak in Nifty, FPIs continue to sell since market sentiments have been impacted globally by the uncertainty triggered by the war and the surge in crude prices. This is likely to impact the IPO market and LIC’s plan for listing this fiscal and push up the current account deficit (CAD).

The Sensex has already fallen 5 per cent, or 2,899 points, to 54,333.81 since February 24 when the Russian invasion of Ukraine started. Global markets are spooked with the events happening in Europe, which are causing volatility. “FPIs have been sellers for almost 6 months now. Commodities are hitting highs across the board – oil, coal, metals and agri-commodities,” said Vineet Bagri, managing partner, TrustPlutus Wealth.

The FPI pull-out is dampening the sentiment in equity and forex markets. “Their impact on markets is visible, with increase in volatility and declining equity prices. However, the fact that this selling by foreign investors has been absorbed by domestic investors bodes well for the outlook of Indian markets,” Bagri said.

According to a Morgan Stanley report, supply constrained oil price rises are bad for India. Indeed, the recent 25 per cent jump in oil prices will expand the current account deficit by 75 bps and inflation by 100 bps on an annualised basis, it said.

US Federal Reserve Chair Jerome Powell recently said he will back a quarter point rate increase when the Fed meets March 15-16, putting to rest debate over starting a post-pandemic round of rate hikes with a larger than usual half-point increase.





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NSE eases rules for Nifty inclusion, may enable entry of LIC


The Index Maintenance Sub-Committee – Equity (IMSC) of NSE Indices Ltd has decided to relax the eligibility criteria of Nifty equity indices and for replacement of stocks in various indices, as part of its periodic review. It has reduced the minimum listing history of constituents from three months to one calendar month.

The changes will be effective from March 31. Market sources say the relaxation will pave the way for the inclusion of Life Insurance Corporation (LIC), which plans to list its shares in March, in the benchmark Nifty 50 Index.

The government and LIC are going ahead with the listing of the latter’s shares, despite high volatility in the markets amid increasing global concerns over Russia’s invasion of Ukraine.

Investment banking sources said once the Sebi approves the issue, the IPO will open for subscription in the second week of March and trading will commence by the third week.

The government expects to mobilise Rs 63,000-66,000 crore from the proposed offer for sale (OFS) to meet its disinvestment target of Rs 78,000 crore for FY22. While LIC is yet to announce the IPO price, market estimates are that the IPO is likely to be Rs 2,000-2,100 per share.

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Eye on Nifty 50 index

From March 31, minimum listing history of a constituent on NSE will be down to one month. This is likely to make LIC’s listing on Nifty 50 — NSE’s benchmark index — smoother.

An Edelweiss Alternative Research report said, “Despite being a lower float name, there is a medium to high probability of the stock (LIC) getting fast entry in the MSCI Index. As in the case of bigger issuances, the index provider does not compulsorily require minimum length of trading requirement or foreign inclusion factor (FIF) of 0.15.”

The key aspect to be kept on radar will be the issue size and the final listing market capitalisation, as anything below Rs 10.7 lakh crore valuation at listing can make the inclusion difficult. “Also, interim market size segment cut off will be an important level to watch out for,” the report said.





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One in three IPOs this fiscal trading below its issue price


AT LEAST one in three initial public offerings (IPOs) this financial year since is currently trading below its issue offer price. In the past 10-plus months since April 1, 2021, in FY 2021-22, as many as 50 companies mopped up a record Rs 1,11,156 crore; state-owned Life Insurance Corporation too expects to mobilise over Rs 50,000 crore through an IPO this year itself.

During the same 10-month period, the benchmark sensitive index (Sensex) of the Bombay Stock Exchange gained over 16.5 per cent. BSE mid-cap and small-cap indices rose 18 per cent and 34 per cent, respectively during the period.

If investors in 18 companies out of 50 listed are sitting on losses, several others have generated only marginal gains. Of the 32 trading at a premium as on February 18, a dozen generated capital gains of up to 15 per cent which includes seven that have risen by up to 10 per cent, according to data compiled by The Indian Express.

Amongst the losers, investors in CarTrade Tech and One97 Communications (Paytm) suffered the maximum value erosion with shares trading over 60 per cent below their issue price. Even Zomato witnessed a sharp 36 per cent correction over the last one month; it is currently trading at Rs 86, which is 13 per cent over its issue price. FSN E-commerce (Nykaa) saw its share price fall from Rs 2,071 on January 17 this year to Rs 1,397 on February 18. The issue was priced at Rs 1,125. Data Patterns dropped from Rs 815 to Rs 652.20 during the same period.

The sharp fall must be seen in the context of a larger selling pressure in tech stocks. While the BSE Tech fell 8 per cent against the Sensex fall of 0.7 per cent since December 31, the Nasdaq has lost 13.4 per cent compared with the 6 per cent in Dow Jones.

Half-a-dozen IPOs are quoting at a premium of over 100 per cent and another six have returned between 50 per cent and 100 per cent capital gains since their listing.

The CEO of an asset management company said investors should be careful when there are many IPOs. “It is always seen that when the markets are on a high, IPOs tend to bunch up as companies hope to command a high premium. In such cases, promoters don’t leave much on the table for investors; they make the most,” said the CEO, who did not wish to be named.

The CEO further raised concern over the huge valuation demanded by new age technology companies and investor appetite. “If these companies could not make profit in lockdown when everything turned online, I am not comfortable with them when the economy has opened up,” he said.

The top ten gainers appreciated between 58 per cent and 273 per cent with Paras Defence and Space Tech topping the list with a gain of 273 per cent; its shares jumped from Rs 175 to Rs 654 after listing October 1, 2021.

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The top loser is CarTrade Tech which came out with an IPO at Rs 1,618 per share. This share is now trading at Rs 586, a discount of 63.8 per cent. Investors also lost in the high-profile IPO of Paytm. The company which offered its shares at Rs 2,150 is now quoting at Rs 833.9 on the exchanges. The market capitalisation of Paytm has crashed from the IPO valuation of Rs 1.5 lakh crore to Rs 54,057 crore as on February 18.

“The large size of Paytm’s IPO coupled with a complex business model and high valuation metrics dampened the performance post listing. Despite this, the IPO story of India races ahead and the IPOs which were launched after Paytm, such as Go Fashion and Tega Industries proved to be extremely successful,” said Mohit Ralhan, Managing Partner & Chief Investment Officer of TIW Private Equity.

The year 2022 is expected to witness IPOs from LIC, Ola, Byju’s and Delhivery. India is home to 79 unicorns; 42 emerged in 2021 alone. “India is the third-largest startup hub in the world and has developed a strong ecosystem of entrepreneurs and venture capital investors, supported by favourable government policies, which will continue to feed into India’s accelerating IPO boom. The story has just begun, and the future looks quite bright,” Ralhan said.

An investment banker said the fate of the IPO market is linked to the strength of the stock market. If the stock market remains volatile and shows major correction, some of the issuers might postpone their IPO plans. On top of this, if issuers price their IPOs at high levels without leaving anything on the table for retail investors, there are bound to be some post-listing disasters.

With the US Federal Reserve planning to hike rates and tighten the monetary policy, foreign portfolio investors (FPIs) have started exiting from newly listed IPOs along with secondary markets.

Market regulator SEBI is also concerned about valuations. The IPO market price discovery is not as “transparent and efficient” as secondary market price discovery, SEBI Chairman Ajay Tyagi said while addressing a CII summit in September last year. In a consultation paper last week, SEBI said new age companies should make disclosures about their valuations based on issuance of new shares and acquisition of shares in the past 18 months before filing draft offer documents.





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