How have Tech companies which listed with less than Rs 5000Cr Market Cap performed?

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Clean Shot 2024 01 16 at 14 00 25 2x

Last month, I published an article about the ability of startups to build valuable companies even without a billion-dollar public market debut. The logical next question is - how have these tech companies, which IPOd at less than Rs 5000Cr market cap, performed?

Since we have already worked on the India Technology Index, we decided to take a slice of that Index and evaluate companies that IPOd with a market cap between 500-5000Cr. Many interesting patterns emerged; some of them are below. Please refer to the complete drill-down report here.

PAT growth > EBITDA growth > Revenue growth

Companies come back to Public markets to raise/return capital post-IPO

Buying into growth - With high PAT growth, the PE multiples get rationalized.

IPO preparation starts much in advance - These companies made their key hires multiple years ahead of the IPO date