. MUMBAI: Even as startups are increasingly rushing to Dalal Street, buoyed by a booming primary market, many of the large, listed companies are trading below their IPO offer price, raising concerns over the long-term value they can generate for investors.Stock prices of close to 10 startups including Swiggy, FirstCry, Paytm, Ola Electric and Delhivery are trading below their offer price, data sourced from the exchanges and Prime Database showed (see graphic) . While market volatility and a broader correction have somewhat had a bearing, a bigger overhang has been the tepid growth of the companies which failed to keep pace with the expectations of the street, said analysts tracking the space. “The realisation (on part of investors) that performance is not meeting expectations is resulting in disappointment and value correction,” said Nikunj Doshi, of Bay Capital. For many startups, acquisitions have been the way of reporting topline growth but whether they are getting reflected in the bottom line remains to be seen, said Doshi.Since 2021, over 30 startups have debuted on the exchanges, ditching larger private fundraises as regulatory easing and higher valuations in public markets made it smoother for firms to go for an IPO. Following a clutch of billiondollar startup listings floated by players such as Lenskart, Groww and Meesho last year, PhonePe, Zepto, Oyo and Flipkart, among others are gearing up for a debut in 2026.To be fair, most of the recently listed startups are trading above their offer price, but analysts said that the performance of digital companies should be weighed after six months of listing. “These companies are largely funded by VC, PE/HNI investors whose lock in expires after six months of listing and the floodgates of supply open. Some startups saw correction in their prices after six months,” said Doshi. A lock-in expiry is the time when restrictions on selling share ends, allowing shareholders to sell their stakes, increasing supply in secondary market which can be difficult to absorb.Public market valuations for tech-led businesses have meaningfully reset from the peak cycle. For instance, in the case of high-quality SaaS companies, which were earlier trading at mid-teens revenue multiples, current market benchmarks are materially lower, reflecting both multiple compression and a moderation in growth rate versus earlier expectations, said Mehekka Oberoi, fund manager at IIFL Fintech Fund. The next batch of startups may have to list at lower valuations compared to their last private fundings.End of ArticleFollow Us On Social MediaVideosCEPA A Win-Win For India And Chile, Key Focus On Market Access And Minerals: Chile EnvoyMamata Banerjee Hits Streets, Leads Kolkata Rally Against ED RaidsAfter Meeting PM Modi, AI Innovators Share Insights That Could Change The GameAmit Shah Outlines Foolproof NIDMS Mechanism To Counter Future Terror AttacksIndia No Longer Imports Arms, UP Leads Defence Manufacturing: Rajnath Singh’Not Accurate’: India Hits Back After Trump Aide Blames PM Modi For Delayed Trade DealMEA Calls For Firm Action As India Flags Disturbing Pattern Of Attacks On Minorities In BangladeshPM Modi To Host German Chancellor Merz In Gujarat As India-Germany Ties Enter Strategic Phase’PM Modi-Trump Held 8 Calls In 2025′: India Rejects Lutnick’s Claim On Stalled Trade AgreementThe Day CBI Arrested Indira Gandhi And Sonia’s Pasta Maker That May Have Saved The Day For Cong123PhotostoriesMeet 5 remarkable animals that live and hunt without eyes8 baby girl names inspired by the poets of IndiaBirthday Special: Hrithik Roshan’s movies to watch on OTTBirthday special: Hrithik Roshan’s social media moments with Saba Azad and familyTaarak Mehta Ka Ooltah Chashmah: From calling Dilip Joshi the ‘pillar of the show’ to reacting to Disha Vakani aka Dayaben’s return, Sharad Sankla aka Abdul gets candid7 moon-kissed baby names for your little princessCurry-smelling kangaroos to banana bees: 6 animals that surprisingly smell like foodWhat teachers wish parents understood‘Hum Paanch’, ‘Dekh Bhai Dekh’, ‘Yes Boss’: Top TV comedy shows from the 90What students learn in school beyond the syllabus123Hot PicksTrump Mexico NewsTrump Denmark NewsGold rate todayBengaluru newsCigarette price hikePublic holidays January 2026Bank Holidays JanuaryTop TrendingCandace OwensTommy Fleetwood and Clare Fleetwood Net WorthTravis KelceVanessa BryantLos Angeles KingsBoston Celtics vs Toronto RaptorsLeBron JamesJa MorantWPL Live ScoreStefon Diggs
MUMBAI: Even as startups are increasingly rushing to Dalal Street, buoyed by a booming primary market, many of the large, listed companies are trading below their IPO offer price, raising concerns over the long-term value they can generate for investors.Stock prices of close to 10 startups including Swiggy, FirstCry, Paytm, Ola Electric and Delhivery are trading below their offer price, data sourced from the exchanges and Prime Database showed (see graphic) . While market volatility and a broader correction have somewhat had a bearing, a bigger overhang has been the tepid growth of the companies which failed to keep pace with the expectations of the street, said analysts tracking the space.
“The realisation (on part of investors) that performance is not meeting expectations is resulting in disappointment and value correction,” said Nikunj Doshi, of Bay Capital. For many startups, acquisitions have been the way of reporting topline growth but whether they are getting reflected in the bottom line remains to be seen, said Doshi.Since 2021, over 30 startups have debuted on the exchanges, ditching larger private fundraises as regulatory easing and higher valuations in public markets made it smoother for firms to go for an IPO. Following a clutch of billiondollar startup listings floated by players such as Lenskart, Groww and Meesho last year, PhonePe, Zepto, Oyo and Flipkart, among others are gearing up for a debut in 2026.To be fair, most of the recently listed startups are trading above their offer price, but analysts said that the performance of digital companies should be weighed after six months of listing. “These companies are largely funded by VC, PE/HNI investors whose lock in expires after six months of listing and the floodgates of supply open. Some startups saw correction in their prices after six months,” said Doshi. A lock-in expiry is the time when restrictions on selling share ends, allowing shareholders to sell their stakes, increasing supply in secondary market which can be difficult to absorb.Public market valuations for tech-led businesses have meaningfully reset from the peak cycle. For instance, in the case of high-quality SaaS companies, which were earlier trading at mid-teens revenue multiples, current market benchmarks are materially lower, reflecting both multiple compression and a moderation in growth rate versus earlier expectations, said Mehekka Oberoi, fund manager at IIFL Fintech Fund. The next batch of startups may have to list at lower valuations compared to their last private fundings.
