THE MERRY BELL
THINK ABOUT IT.
OYO’s draft red herring prospectus (DRHP) is 642 pages long, Paytm wrote 539 pages and ixigo’s draft papers are 525 pages. Zomato, Policybazaar and MobiKwik have over 400 pages of financial data, shareholder details, business models, fundraising plans, opportunities, risks and more. Among those waiting to lap up the shares of these firms is a new crop of young, tech-savvy investors, super excited about the prospect of owning a piece of the IPO action. They follow their hearts and pile up on these brands that they use on a daily basis. They are risk-takers. The millennial and GenZ investors go by the brand value of these hugely popular consumer tech companies, not by multi-threaded analysis of hundreds of pages of DRHP files, at least not a majority of them.
Online retail brokerage Paytm Money, which also enables users to apply for an IPO before it opens in the stock markets, said that more than 22 per cent of day one applicants for the Zomato IPO were new to capital market investing, 27 per cent were under the age of 25 and 60 per cent were under the age of 30.
“For the tech-savvy, young population with smartphones, who use a lot of these consumer tech apps, household consumer brands coming up for IPOs make a lot of sense. The thrill of investing in tech stocks
