Flipkart, PhonePe among 35+ Indian companies seeking IPOs by 2027
What's the story
More than 35 Indian tech start-ups, valued at $100 billion in total, are gearing up to go public by 2027, according to Bloomberg.
This could potentially revive stock sales in India, as noted by industry observers.
Notably, companies like Flipkart (owned by Walmart), PhonePe, and OYO Hotels are among those looking to list on the country's stock exchanges.
Financial growth
Startups show improved financial health
Kashyap Chanchani, Managing Partner at The Rainmaker Group, said the financial health of upcoming start-ups is much better than those that went public in 2021 and 2022.
He said two-thirds of these firms are already profitable and showing more transparency.
This is a departure from previous years when several start-ups struggled after debuting at high valuations.
Market slowdown
IPO activity in India sees a decline
The number of share sales in India declined by 34% in the first quarter owing to a sluggish stock market.
The benchmark NSE Nifty 50 Index, which had been on an upward trajectory for nine consecutive years, started declining in September 2024.
This was attributed to an unexpected slowdown in economic growth and analysts lowering their expectations for corporate earnings.
Market predictions
Future IPO prospects and investor concerns
Despite the current downturn, Chanchani predicts that deals in India will pick up in the coming months.
Upcoming sales include LG Electronics's Indian unit, which may raise as much as $1.7 billion, and electric-scooter maker Ather Energy Pvt., which could raise about $400 million.
However, companies going public will need to address investor concerns about a slowing economy and earnings growth.