The recent lukewarm market debut of Lenskart has sent ripples through the initial public offering (IPO) landscape, particularly affecting new-age companies preparing to go public. The eyewear retailer's shares listed at a 3% discount to their IPO price of ₹402, triggering a domino effect on the grey market premiums (GMPs) of upcoming IPOs.

Impact on Upcoming IPOs

The cautious market sentiment has led to significant drops in the GMPs of several high-profile tech startups:

This sharp decline in GMPs reflects a growing wariness among investors towards new-age tech companies, especially those yet to demonstrate consistent profitability.

Groww's IPO Performance

Despite the overall market caution, Groww's ₹6,632.00 crore IPO closed with an impressive 17.6x subscription. The fintech company is scheduled to list on November 12. Groww's financial performance has been a bright spot, with the company reporting:

• Net profit: ₹1,824.00 crore
• Revenue: ₹4,061.00 crore

These figures suggest a strong financial foundation, which may help explain the high subscription rate despite the challenging market conditions.

PhysicsWallah's Upcoming IPO

PhysicsWallah is set to open its ₹3,480.00 crore IPO on November 11. However, the edtech company faces headwinds due to its recent financial performance:

• Net loss: ₹243.00 crore

This loss may contribute to investor hesitancy, especially in light of the current market sentiment.

Pine Labs' Ongoing IPO

Pine Labs' ₹3,890.00 crore IPO has encountered a tepid response, with only 38% subscription through Day 2. The company's financial snapshot reveals:

• Revenue: ₹2,274.00 crore
• Net loss: ₹145.00 crore

The combination of underwhelming subscription rates and reported losses aligns with the overall cautious approach investors are taking towards tech startups.

Market Sentiment Shift

The lackluster debut of Lenskart and the subsequent decline in GMPs for upcoming IPOs signal a significant shift in market sentiment. Investors appear to be reassessing their risk appetite for tech startups, particularly those that are yet to demonstrate consistent profitability.

This cautious approach is likely influenced by several factors:

• The global economic uncertainty
• Recent performances of listed new-age companies
• A growing emphasis on fundamentals and profitability over growth-at-all-costs strategies

As the IPO market evolves, companies preparing to go public may need to reassess their valuations and strengthen their financial narratives to attract investor interest in this more discerning environment.

The Indian primary market is buzzing with activity as three companies – Pine Labs, PhysicsWallah, and Emmvee Photovoltaic Power – gear up for their Initial Public Offerings (IPOs). Each of these offerings is currently showing modest grey market premiums, indicating investor interest ahead of their official listings.

IPO Details and Grey Market Premiums

Pine Labs IPO

Pine Labs, a leading merchant commerce platform, opened its IPO on November 7, which is set to close on November 11. The company aims to raise ₹3,899.91 crore through this public offering. On the first day of subscription, the issue was subscribed 0.13 times, indicating a slow start but potential for growth in the coming days.

PhysicsWallah IPO

EdTech company PhysicsWallah is set to open its IPO from November 11 to November 13. The ₹3,480 crore issue comprises fresh shares worth ₹3,100 crore and an offer-for-sale component of ₹380 crore. The company's focus on affordable online education has garnered attention in the rapidly growing EdTech sector.

Emmvee Photovoltaic Power IPO

Emmvee Photovoltaic Power, a solar cell manufacturer, is also scheduled to open its IPO from November 11 to November 13. The company's ₹2,900 crore issue includes fresh shares worth ₹2,143.86 crore and an offer-for-sale of ₹756.14 crore. Notably, Emmvee shows the highest grey market premium among the three, possibly reflecting investor optimism in the renewable energy sector.

Market Implications

All three companies plan to list on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) between November 14-18. The modest grey market premiums suggest cautious optimism among investors, with Emmvee Photovoltaic Power generating the most excitement.

While grey market premiums can provide some indication of investor sentiment, it's important to note that they are unofficial and subject to change. Investors should conduct thorough research and consider their risk appetite before making investment decisions.

As these IPOs unfold, they may offer insights into investor appetite for new offerings across diverse sectors – fintech, education technology, and renewable energy – reflecting the evolving landscape of the Indian economy.