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The enthusiasm for new age startup IPOs now seems to be cooling down. Investors’ confidence has been shaken after the weak listing of Lenskart. The GMPs of Groww, PhysicsWallah and Pine Labs have now reduced to only 2 to 5 percent.
Mumbai. The magic of new age IPOs now seems to be fading. Lenskart’s shares were listed at a 3 percent discount, which shook investors’ confidence in high-valued digital companies. Its impact is visible on other IPOs as well – the gray market premium (GMP) of renowned startups like Groww, PhysicsWallah and Pine Labs has now come down to just 2–5 per cent. Market experts say that now investors are in a ‘cautious’ mood and are taking more thoughtful steps regarding startup valuation.
Groww IPO: Tremendous response, but limited expectations
The Rs 6,632 crore IPO of Groww’s parent company Billionbrains Garage Ventures was subscribed 17.6 times. Qualified institutional buyers bid 22 times, while retail investors bid 9.4 times. The company earned a profit of Rs 1,824 crore on income of Rs 4,061 crore in FY25, but its valuation is already considered high. Now GMP is only 4-5 percent. Which indicates that there is little hope of big profits on the day of listing.
PhysicsWallah IPO: Doubts along with confidence
PhysicsWallah’s IPO of Rs 3,480 crore will open on November 11 and will run till November 13. The company has 1.3 crore YouTube subscribers and 44 lakh paid users, and also operates 303 hybrid centres. Despite this, the company suffered a loss of Rs 243 crore in FY25. For this reason its GMP has reduced from Rs 9 to Rs 4. After the experience of Lenskart, investors seem to be adopting a cautious approach here too.
Pine Labs IPO: Weak start, declining confidence
Pine Labs’ IPO of Rs 3,890 crore has been subscribed only 38 percent till the second day. The company’s revenue stood at Rs 2,274 crore in FY25, but it also incurred a loss of Rs 145 crore. The GMP of Pine Labs, once considered the shining star of the fintech sector, has fallen from Rs 35 to Rs 4. This is a clear indication that after the weak listing of Lenskart, the market is no longer showing the same enthusiasm about startup IPOs as before.
