The Indian Tech IPO Journey (Athera Venture Partners)

Summary

• Urban Company's IPO was oversubscribed 103 times and its shares shot up on public listing.§1
• A seasoned VC models that 10-15% of portfolio companies might IPO and 30%-40% will shut down.§2
• Mindtree's IPO was priced at ₹425 and oversubscribed 108 times.§9
• PB Fintech's IPO was oversubscribed 17 times, and its shares rose 27% above the IPO price on the first day.§12
• PB Fintech listed at a $6.15 billion valuation.§12
• PolicyBazaar's share price declined from a high of ₹1300+ in November 2021 to about ₹375 one year later.§12
• By the time of PolicyBazaar's IPO in 2021, revenue requirements reached ₹500 crore.§3

Key insights

1. When Geometric Limited listed in 2000, it generated revenues of about ₹60-₹70 crores.§3
2. PayTM got away with a $20 billion IPO valuation but fell drastically right after its IPO.§4
3. Mindtree's shares opened around a 40% premium on listing day.§9
4. PB Fintech's listing created 70 dollar-millionaires on listing day.§13
5. Most portfolio companies of one investor are not expected to be IPO-ready in the next 5-7 years.§10
6. DeepTech may be the next wave for Indian IPOs, as underlying hardware gets cheaper.§6