Falling share prices, poor financials: New-age tech companies and pain in MF portfolios

Shares of the new-age firms that had been the darlings of many buyers as soon as have misplaced some sheen these days. Share value of many such firms greater than halved up to now yr. In contrast to the asset-heavy conventional firms, these new-age firms guess on progressive enterprise fashions that leverage know-how to boost their operations. Over the past two years, some gamers from the startup area went for preliminary public choices (IPOs) and listed with substantial premiums (besides Paytm and CarTrade Tech) on their debut on the bourses. Mutual funds, too, confirmed curiosity in just a few of those firms, betting large on their future prospects despite the fact that these firms reported destructive earnings numbers. “Their IPOs had been aggressively priced as a result of valuation cues from Nasdaq and the greed of promoters and early buyers. Major market buyers had been additionally grasping to earn cash on itemizing. However quickly euphoria in valuation waned and these shares continued to fall as a result of poor visibility of income progress and margins,” says Deepak Jasani, head of retail analysis, HDFC Securities. Right here is the listing of new-age tech firms (as categorized by Prime Database) that had been listed after January 2021 the place mutual funds pruned their publicity considerably over the interval. Return worth (%) for the shares was as of October 25, 2022. Supply: ACEMF

Straightforward Journey Planners
Itemizing date: March 19, 2021
Itemizing day acquire/loss (from supply value): 11%
Trade: Tour, travel-related providers
Schemes that had notable publicity: Quant Energetic, Navi Massive & Midcap and Navi ELSS Tax Saver
Enterprise profile: EaseMyTrip is an Indian on-line journey firm based in 2008. It offers resort bookings, air tickets, vacation packages, bus bookings and white-label providers

Nazara Applied sciences
Itemizing date: March 30, 2021
Itemizing day acquire/loss (from supply value): 43%
Trade: Digital leisure
Schemes that had notable publicity: ICICI Pru Flexicap, Aditya Birla SL Small Cap and Motilal Oswal Dynamic Fund
Enterprise profile: Nazara Applied sciences is a number one India-based diversified gaming and sports activities media platform with a presence in India and throughout rising and developed world markets. It presents interactive gaming, e-sports and gamified studying ecosystems

Zomato
Itemizing date: July 23, 2021
Itemizing day acquire/loss (from supply value): 66%
Trade: E-retail/e-commerce
Schemes that had notable publicity: Mirae Asset Rising Bluechip, Nippon India Small Cap and Franklin India Flexi Cap Fund
Enterprise profile: Zomato is an Indian multinational restaurant aggregator and meals supply firm. Launched in 2010, its know-how platform connects prospects, restaurant companions and supply companions, serving their a number of wants

CarTrade Tech
Itemizing date: August 20, 2021
Itemizing day acquire/loss (from supply value): -7%
Trade: E-retail/e-commerce
Schemes that had notable publicity: ICICI Pru Know-how, DSP Fairness Alternatives and HDFC Massive and Mid Cap Fund
Enterprise profile: Cartradetech.com is a multi-channel auto platform with protection and presence throughout automobile varieties and value-added providers. Its platform operates beneath a number of manufacturers: CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto and AutoBiz. By these platforms, it permits prospects, automobile dealerships, automobile OEMs and different companies to purchase and promote their automobiles

FSN E-Commerce Ventures
Itemizing date: November 10, 2021
Itemizing day acquire/loss (from supply value): 96%
Trade: E-retail/e-commerce
Schemes that had notable publicity: ICICI Pru Flexicap, UTI Flexi Cap and SBI Magnum Fairness ESG Fund
Enterprise profile: Included in 2012, Nykaa, the buyer know-how platform operated by FSN, delivers a content-led, life-style retail expertise to customers. The corporate has a various portfolio of magnificence, private care and vogue merchandise, together with its personal merchandise

PB Fintech
Itemizing date: November 15, 2021
Itemizing day acquire/loss (from supply value): 23%
Trade: Fintech
Schemes that had notable publicity: Mirae Asset Rising Bluechip, Invesco India Contra and Franklin India Prima Fund
Enterprise profile: PB Fintech is the main on-line platform for insurance coverage and lending merchandise offering entry to insurance coverage, credit score and different monetary merchandise. It’s India’s largest on-line platform for insurance coverage (PolicyBazaar) and lending (Paisabazaar) merchandise leveraging the ability of know-how, knowledge and innovation

One97 Communications
Itemizing date: November 18, 2021
Itemizing day acquire/loss (from supply value): -27%
Trade: Fintech
Schemes that had notable publicity: Mirae Asset Targeted, Aditya Birla SL Frontline Fairness and Mirae Asset Rising Bluechip fund
Enterprise profile: One 97 Communications-owned Paytm is India’s main digital ecosystem for customers and retailers. Paytm presents fee providers, commerce and cloud providers, and monetary providers to customers

Delhivery
Itemizing date: Could 24, 2022
Itemizing day acquire/loss (from supply value): 10%
Trade: Logistics resolution supplier
Schemes that had notable publicity: SBI Fairness Hybrid, SBI Targeted Fairness and Mirae Asset Midcap Fund
Enterprise profile: Based in 2011, Delhivery is a logistics and supply firm in India. It presents numerous providers like heavy items supply, specific parcel supply, truckload freight, cross-border specific, provide chain options, provide chain software program and freight providers.
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