Is it true that Delhivery and OYO are putting of their IPO plans due to the weak performance of stocks like Paytm, Zomato and Nykaa?

Hard to say but that is what it looks like. At least that appears to be the purported reason. The technology and digital stocks, which were part of the IPO boom in the last few months, have fallen out of favour. The big reason is the sharp fall in most digital shares post listing has been stiff pricing. It is not just Paytm because even other digital plays like Policybazaar, CarTrade, Zomato and Nykaa have all fallen substantially from their peak prices.

One outcome is that it has impacted sentiments of other IPOs in the queue. For instance, big names in the queue like Oyo Hotels, Delhivery, PharmEasy, Droom etc have unofficially biding time in the side lines instead of announcing the IPO dates. They are just waiting and watching for now. The apprehend that the anti-digital feeling could hit valuations as well as post listing performance. Delhivery and MobiKwik have put off IPO for now.

There is clearly some genuine concern as Delhivery, PharmEasy and Droom are seriously rethinking IPO timing. For instance, Delhivery has already pushed back its Rs.7,460 crore IPO to April 2022 to avoid the year end rush of LIC and others hoping that the digital story should revive by then. Delhivery is not too keen to go ahead with the IPO unless there is a shift in market sentiments on digital IPOs. Other players have similar concerns.

OYO Rooms has other concerns in terms of legal cases, but in the case of other digital IPOs, it is purely about digital appetite. PharmEasy is delaying its IPO as is Droom, till there is clarity on digital traction. In addition, even Indian original companies based abroad like California-based SAAS provider (Druva) and Singapore-based mobile solutions start-up InMobi have opted to put off their IPO plans for the time being. It sure looks tough.