MUMBAI: Valuations of several new-age companies have declined in the market for unlisted stocks as the craze for startups has waned, which could potentially delay their plans to go public.

Farm Easy, Oyo, boat And ixigo According to people working in the unlisted equity market, the last six months have seen a sharp decline in value.

This may discourage promoters and private equity investors from going for public issue of shares. poor performance of stock market

, Policybazaar India He said that after the IPO, the mind of the investors will also be affected.

Rahul Thalia, Director, Sarafin Financial Advisors, said, “Domestic investors have realized that if there is a private equity exit from a stock, there is very little room for upside in share prices. “Whether it is (PolicyBazaar) or Paytm, they have shown that high-priced companies quickly lose investor favour; Higher valuations are untenable in the long run. Now, investors have returned to companies like NSE (National Stock Exchange) or CSK (Chennai Super Kings), where they see more value.

unlisted shares of Farm Easy (API Holdings) trading around Rs 45, listing day gains at a high of Rs 145 was leading to gains in the shares. IIFL had last November bought a major chunk of the shares for Rs 53 and offloaded the entire stake at Rs 82.

Imagine Marketing Ltd, which owns the Boat brand, has seen a sharp drop in valuation since the company’s proposed share sale was discussed. Shares that traded as high as Rs 1,250 a few months ago are now trading at Rs 850-900 per share.

Oyo, which reached a high of Rs 130 six months ago, is now trading at Rs 90-95.

“Fancy startup stocks have clearly lost their sheen because of the delay in IPO plans,” said Tushar Bopche, cofounder of InvestValue Fintech.

“If you have surplus funds, investors can still hold on to their buyouts and wait for another round of increase in share prices once the IPO market resumes,” he added. : “Some stocks have even corrected in the range of 30- 50% since the time the IPO roadshow was going on, it is at its peak.

The shares of travel portal Ixigo seem to have been lost in transit, as they are changing hands at around Rs 180 as compared to Rs 220-230 earlier.

Investment bankers said these valuations reflect a reversal of fortunes in new-age companies popular in the broader equity markets.

Paytm’s stock closed at 655.35 on Tuesday, compared to its IPO price of Rs 2,150 in November last year.

PB Fintech is now trading at Rs 584. The shares were sold in the IPO last November for Rs 980.

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