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New Delhi: Paytm is headed to Dalal Street for India’s largest IPO of $2.5-3billion around the festive Diwali season. Zomato has already filed its draft red herring prospectus (DRHP) with the market regulator SEBI for a $1.1 bn IPO.
Over the next couple of weeks, other unicorns are also likely to do the same, and that list includes Delhivery, PolicyBazaar, Nykaa, and Mobikwik.
So, the multi-billion dollar question is this: How will Dalal Street value all these IPOs of loss-making startups? After all, these IPOs will also mark the Indian public markets debut with listings of loss-making companies!
Not one of the startups headed to Dalal Street has ever reported a profit, and neither is it their immediate priority. Zomato in its regulatory filings has disclosed it would be many years before it declares one.
Dalal Street has always approached stocks based on the price-to-earning ratio; net profit; EBITDA; discounted cash flows etc. But it’s a whole different ball game when it comes to startups. So what metrics work for startups?
Watch this video to find out LetsVenture Plus President Nimesh Kampani and Bernstien director Gautam Chhugani discuss this with ET Now’s Nayantara Rai.
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