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While new-age tech IPOs are often launched with fanfare and lofty expectations, the post-listing reality has been far less glamorous. Nearly half of these companies that went public so far have seen their stock prices falter, trading below the post listing price, according to an analysis by ETMarkets.Out of 11 new-age technology companies that made their way on to the D-Street, 5 of them have yielded negative returns for investors, even after an extended post-listing period. This contrasts with the listing gains as 9 out of the 11 companies delivered positive returns to investors on debut.<iframe title="New-Age Tech IPOs: A Mixed Bag" aria-label="Table" id="datawrapper-chart-hPENk" src="https://et-infographics.indiatimes.com/graphs/hPENk/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="591" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}();</script>CarTrade Tech and Paytm disappointed investors the most after their market debuts. While the former's stock has seen a 35% decline since its debut, Paytm’s shares have dropped 65%, highlighting significant losses for investors.Paytm’s journey has been especially turbulent. The company initially faced intense scrutiny over profitability, which dampened early investor confidence. The situation worsened when the Reserve Bank imposed restrictions on Paytm Payments Bank, delivering a severe setback that further weighed on investor sentiment.Nykaa, which entered the market as one of the few profitable tech companies, has also struggled to meet investor expectations post the IPO. Despite its initial promise, the stock has come under heavy scrutiny, currently trading 50% below its post-listing price.Investor sentiment for new-age tech IPOs is influenced by factors like revenue growth, market position, scalability, and, critically, the path to profitability. Companies which have shown a clear path to profitability coupled with strong growth strategies have fared better.Zomato, initially met with skepticism, scripted a notable turnaround in its financials by achieving profitability, which caught investors' attention. The food delivery company's stock more than doubled since the listing.EasyTrip Planners has been the standout successful story among its tech peers. Three years after the listing, its shares surged over 150%, making it the most prosperous of the new-age tech IPOs."Companies that are market leaders with strong fundamentals and a clear growth trajectory tend to fare better. For instance, we have seen positive transformations in companies like Zomato and PolicyBazaar, which have steadily improved their market positions and financial performance over the years. However, companies facing growth challenges and regulatory hurdles like Paytm have struggled to maintain investor confidence," said Abhishek Jain, Head of Research, Arihant Capital.What's in store for Swiggy?Swiggy, an emerging player in quick commerce and food delivery is gearing up for its marquee public offer, which is creating a lot of buzz in the market. The Rs 11300 crore IPO opens for bidding on November 6.Analysts said Swiggy’s positioning aligns with the high-growth narrative often associated with other tech IPOs in the past, but its financials reflect a longer timeline to profitability.Profitability concerns are significant, as investors have become increasingly wary of tech companies requiring extended timelines to post positive bottom line numbers.The company has more than doubled its revenues to just over Rs 11,000 crore in the last two fiscals, but the bottom line is still in the red with a loss of Rs 2,350 crore in FY24."For Swiggy, profitability may remain elusive for the next few years, particularly on a consolidated basis. The company's quick commerce business has yet to show strong performance, and achieving profitability across all segments may take time," Jain said.The IPO values Swiggy at around $11.3 billion, which reflects a more cautious approach as against its earlier goal of $15 billion a few months ago.Analysts noted that Swiggy appeared to have noted the post-IPO volatility many tech companies have experienced due to inflated valuations. By setting a more measured pricing strategy, the company is likely aiming to avoid the significant share price declines that have affected other tech IPOs in India.As things stand, Swiggy's IPO may appeal more to investors with a high-risk appetite, who are optimistic about the company's potential for long-term transformation, but recognize the current limitations in growth and profitability."As with its listed peer Zomato, which also debuted with a focus on scaling before profitability, Swiggy may appeal more to investors who are comfortable with long-term risks in exchange for the potential in this fast-evolving sector," said Santosh Meena, Head of Research, Swastika Investmart.However, the company' ability to manage costs and demonstrate progress toward profitability will be crucial in maintaining investor confidence post-listing."Swiggy's success post-IPO will largely depend on its ability to reassure investors of sustainable growth and gradual profitability improvements in the coming quarters," Jain said.(With data inputs from Ritesh Presswala)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Mumbai: India’s stock market dropped over 1% on Monday, as unrelenting selling by foreign investors deepened bearish sentiment. The Nifty closed below 24,000 for the first time in three months, dragged down by Reliance Industries as well as two-wheeler and power stocks. The outcome of the US presidential elections and the US Federal Reserve’s rate-setting meeting could determine the market's direction in the near term, said analysts. The Nifty ended at 23,995—the lowest closing since August 6, down 309 points or 1.3% over Friday’s close. The Sensex closed at 78,782, down 941.88 points or 1.2%. Both indices fell as much as 1.6% earlier in the day. “The sharp decline today can be attributed to investor nervousness due to the impending US election outcome,” said Vaibhav Porwal, cofounder, Dezerv. “The weak earnings this quarter and the global uncertainty have also underpinned the recent decline in Indian markets.” 114961121Foreign portfolio investors (FPIs) sold shares worth a net Rs 4,330 crore on Monday, after pulling Rs 1,09,800 crore out of the market in October. Their domestic counterparts bought shares worth Rs 2,936 crore. In October, they were buyers to the tune of `1,10,500 crore. Since October 1, the Nifty has fallen 7% and Sensex has declined 6.5%. Though markets may be oversold in the near term, the Nifty faces hurdles at 24,300 to 24,500 levels. “The markets have been in a corrective phase for the past one month with no sign of trend reversal,” said Ruchit Jain, lead research analyst, 5 Paisa. “The Nifty may take support at the 200-day moving average of 23,500 to 24,000 levels.” Elsewhere in Asia, China gained 1.17%, Taiwan rose 0.81%, and South Korea ended 1.83% higher. Hong Kong advanced 0.30%, while Indonesia declined 0.34%. In the US, Wall Street indices were a mixed bag. At the time of going to press, the S&P 500 was up 0.1%, the Dow Jones was down 0.3% and the Nasdaq Composite was 0.1% higher. At home, the Volatility Index (VIX) rose 5% to 16.69 on Monday, signalling that traders see near-term risks to the market. “The investor caution is on account of the US election outcome, Fed meeting and China’s stimulus announcement later this week,” said Andrew Holland, CEO, Avendus Capital Alternate Strategies. “This makes it a traders’ market and not an investors' market.”

New Delhi: The alarming issue of exaggerated health claims associated with supplements will be under stricter scrutiny as a government panel proposes to shift it under the control of drug regulator instead of Foods Safety and Standards Authority of India (FSSAI). The expert panel was earlier formed to look into addressing the overlapping concerns between nutraceuticals and drugs.People in the know told ET that the panel has proposed that the claims related to cure or promise to mitigate disease disorder or condition including disease risk reduction (DRR) shall be regulated by the Central Drugs Standard Control Organisation (CDSCO). "The DRR claims or products having properties for treatment of a disease shall not be approved under FSS," said a source, sharing that a report has been sent to the health ministry, drug regulatory authority and FSSAI.Another person said that the same has been proposed to strengthen the regulatory mechanism for claims. "The DRR claims are widely used by manufacturers without approvals. These claims are also manipulated in such a way that mimics treatment cure of any specific disease," he said.The panel has suggested that FSSAI may regulate only nutritional and health claims that are listed under the FSS (claims and advertisements) Regulations 2018.The experts have also sought that a provision be made to submit labels along with the claims and products at the time of licensing in appropriate regulations.A high-level committee was formed earlier this year to review the guidelines related to these products and suggest a new framework. Senior officials from the ministries of health and family welfare and food processing industries, Department of Pharmaceuticals, FSSAI, Drug Controller General of India, director generals of ICMR and health services are actively discussing the issue and will soon come out with measures to regulate the nutraceutical industry.

Capital markets regulator Sebi on Monday directed Embassy Office Parks Management Services, the manager of Embassy REIT, to suspend its CEO Aravind Maiya. The regulator also told Embassy Office Parks to appoint an interim CEO with immediate effect.This interim order follows a previous order by the National Financial Reporting Authority (NFRA), which debarred Maiya for 10 years over alleged professional misconduct linked to his former role as an auditor for Coffee Day Enterprises Ltd (CDEL).NFRA’s findings highlighted serious lapses in audit standards and due diligence under Maiya’s watch, which contributed to a high-profile financial scandal involving CDEL.Sebi said these lapses, according to NFRA, led to significant investor losses, questioning Maiya’s adherence to the rigorous standards expected in the securities market.Embassy Office Parks had argued against the suspension, contending that the NFRA's order did not compromise Maiya’s qualifications as a “fit and proper person” in his current capacity. However, SEBI's order rejected this argumentSebi said that Aravind Maiya was guilty of professional misconduct due to gross negligence, failure to exercise due diligence and disclose material facts and report material misstatements known to him.Citing the gravity of NFRA's findings, Sebi said any individual with a record of significant misconduct posed an inherent risk to investor trust and the integrity of the securities market.The regulator noted that allowing Maiya to continue to helm the affairs of Embassy REIT as CEO of its Manager, even after an NFRA order in force calls into question his professional conduct, integrity and competence, which may cause harm to investors."Leadership accountability is a keystone of market confidence, and requires unimpeachable integrity. This is a case where Sebi is constrained to intervene in order to firmly enforce the fit and proper criteria in the interest of investors," it said.