INCREASING FINANCIAL VALUATION OF COMPANIES THROUGH IPO

(A CASE STUDY ON ZOΜΑΤΟ & ΝΥΚΑΑ)

A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE DEGREE
OF
BACHELOR IN COMMERCE (ACCOUNTING & FINANCE)
UNDER THE FACULTY OF COMMERCE
BY
KHUSHI RAKESH MEHTA
ROLL NUMBER 67

UNDER THE GUIDANCE OF

MR. SATISH BHOR

S.K. SOMAIYA DEGREE COLLEGE OF ARTS, SCIENCE & COMMERCE

VIDYANAGAR, VIDYAVIHAR, MUMBAI.
MAHARASHTRA-400077
MARCH 2022
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under the guidance of MR. SATISH BHOR Department of Accounting & Finance in
partial fulfillment of requirement for the Bachelor of Commerce (Accounting & Finance)
degree in S K Somaiya College of Somaiya Vidyavihar University.

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Mr Satish Bhor

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Date:
Place: Mumbai-77
Somaiya Vidyavihar University

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VALUATION OF COMPANIES THROUGH IPO (A CASE STUDY ON ZOΜΑΤΟ &
ΝΥΚΑΑ) is bonafide record of the project work done by KHUSHI RAKESH MEHTA in
partial fulfillment of requirement for the Bachelor of Commerce
(Accounting & Finance) degree in S K Somaiya College of Somaiya Vidyavihar University.

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ACKNOWLEDGMENT
To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.
I would like to thank my Principal CA Monica Lodha, for providing the necessary facilities
required for completion of this project.
I take this opportunity to thank our Coordinator Mr. Satish Bhor for his moral support and
guidance.
I would also like to express my sincere gratitude towards my project guide Mr. Satish Bhor
whose guidance and care made the project successful.
I would like to thank you my College Library, for having provided various reference books
and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and Peers who supported me throughout
my project.
 EXECUTIVE SUMMARY
In the era of startups and entrepreneurial world the economy of the overall industry
strengthens up and for that mainly the startups which try to get investment and increase their
valuation they issue IPO. It helps a particular company to get the access of public market and
increase their financial valuation. This study is informatively based on this topic of how this
era startups are raising their valuation through IPO and making a strong stand in their
respective industry.
As the study progresses further, it will show how the companies like Zomato and Nykaa
increased their valuation through IPO and what were the scenarios of their financials after
that.
The study will help to know the impact of IPO in these companies and also will give
suggestions in the end to execute a successful IPO plan to increase a firm's valuation.
 INDEX
Sr. No
1. Title
Chapter 1: Introduction
1.1 Meaning of value
1.2 Types of Value
1.3 Meaning of Business Valuation
1.4 Purpose of Business Valuation
1.5 Different Approaches to Business Valuation
1.6 Methods of Valuation
1.7 Initial Public Offer (IPO)
1.8 History of IPO
1.9 Process of IPO
1.10 Introduction of Zomato
1.11 Introduction of Nykaa
2. Chapter 2: Research Methodology
2.1 Objective
2.2 Scope of the study
2.3 Limitations of the study
2.4 Significance of the study
2.5 Methodology
2.6 Need of the study
3. Chapter 3: Literature Review
4. Chapter 4: Data analysis and Interpretation
4.1 IPO analysis of India in 2021
4.2 Impact of IPO on Valuation
4.3 Reasons behind private company turning into public company
4.4 Study on Zomato- The Food Delivery Market
4.4.1 The Platform of Zomato
4.4.2 Market supplies
 4.4.3 Financial Overview
4.4.4 Zomato's unit economics
4.4.5 Zomato's business metrics
4.4.6 Zomato's issue of IPO in Pandemic
4.4.7 Equity ownership prior to IPO
4.4.8 Zomato's IPO details
4.4.9 Zomato's IPO objective
4.4.10 Zomato's listing date highlights
4.4.11 Zomato's revenue over the time
4.4.12 Growth and Profitability trend
4.4.13 Zomato's valuation boosted through IPO.
4.5 Study on Nykaa
4.5.1 Revenue breakup
4.5.2 Fundamental analysis of Nykaa
4.5.3 Nykaa on social media.
4.5.4 Other promotions of Nykaa
4.5.5 Growth prospects
4.5.6 Nykaa IPO details
4.5.7 Nykaa IPO objective
4.5.8 Shareholding Pattern
4.5.9 Nykaa share price performance
4.5.10 Financial review of Nykaa
4.5.11 Nykaa's Income and Expenses Statistics
4.5.12 Nykaa's cost breakup
4.5.13 Zomato, Nykaa and Paytm to enter nifty next 50 index
5. CHAPTER 5: Suggestions and Conclusion
5.1 Suggestions
5.2 Conclusion
6. CHAPTER 6: Bibliography
6.1 References
CHAPTER ONE
INTRODUCTION

1.1 MEANING OF VALUE

Value determines the worth of an asset, a company, and its financial performance. Value is the
monetary, material, or assessed worth of an asset, good, or service. "Value" is attached to a
large number of concepts including shareholder value, the value of a firm, fair value, and
market value. The process of calculating and assigning a value to a company or an asset is
called valuation. Comparing the different values and valuations of a company to other
companies can help with determining investment opportunities. Common types of value
include market value, book value, enterprise value, and value stock.

Understanding Value
Value can a quantity or number, but in finance, it's often used to determine the worth of an
asset, a company, and its financial performance. Investors, stock analysts, company cutives
estimate and forecast the value of a company based on numerous financial metrics.
Companies can be valued based on how much profit they generate on a per-share basis,
meaning the profit divided by how many equity shares are outstanding.
The process of calculating and assigning a value to a company or an asset is a process called
valuation. However, the term valuation is also used to assign a fair value for a company's
stock price. Equity analysts that work for investment banks often calculate valuation for
company to determine whether it's fairly valued, undervalued, or overvalued based on the
financial performance as it relates to the current stock price.
Comparing the different values and valuations of a company to other companies within the
same industry can help with determining investment opportunities. For example, if the value
of a firm is estimated at $50 per share, but the stock is trading at $35 per share in the market,
an investor might consider buying the stock. On the other hand, if the stock is trading at $85
per share, far above the perceived value, the investor could consider selling or shorting the
stock.
1.2 TYPES OF VALUE:
Below are some common uses for the term value in finance and in the stock market.

TYPES OF VALUE

MARKET VALUE BOOK VALUE VALUE STOCK ENTERPRISE VALUE

• Market Value
Market value (also known as OMV, or "open market valuation") is the price an asset would
fetch in the marketplace, or the value that the investment community gives to a particular
equity or business. Market value is also commonly used to refer to the market capitalization
of a publicly traded company, and is calculated by multiplying the number of its outstanding
shares by the current share price.
Market value is easiest to determine for exchange-traded instruments such as stocks and
futures, since their market prices are widely disseminated and easily available, but is a little
more challenging to ascertain for over-the-counter instruments like fixed income securities.
However, the greatest difficulty in determining market value lies in estimating the value of
illiquid assets like real estate and businesses, which may necessitate the use of real estate
appraisers and business valuation experts respectively.

Understanding Market Value

A company's market value is a good indication of investors' perceptions about its business
prospects. The range of market values in the marketplace is enormous, ranging from less than
$1 million for the smallest companies to hundreds of billions for the world's biggest and most
successful companies. Market value is determined by the valuations or multiples accorded by
investors to companies, such as price-to-sales, price-to-earnings, enterprise value-to-
EBITDA, and so on. The higher the valuations, the greater the market value.
Market value is determined by the valuations or multiples accorded by investors to
companies, such as price-to-sales, price-to-earnings, enterprise value-to-EBITDA (Earnings
lacfore interest, taxes, depreciation and armortization) and so on. The higher the valuations,
the greater the market value.
Market value can fluctuate a great deal over periods of time and is substantially influenced by
the business cycle. Market value for a firm may diverge significantly from book value or
shareholders' equity. A stock would generally be considered undervalued if its market value is
well below book value, which means the stock is trading at a deep discount to book value per
share. This does not imply that a stock is overvalued if it is trading at a premium to book
valuc, as this again depends on the ctor and the extent of the premium in relation to the
stock's peers.

Example of Market Value

Beth is selling her house for $300,000. However, no one is willing to buy the home for more
than $250,000. Even though the house is being offered at a higher price, its market value is
only $250,000.

• Book Value
Book value is equal to the cost of carrying an sset on a company's balance sheet, and firms
calculate it netting the asset against its accumulated depreciation. As a result, book value can
also be thought of as the net asset value (NAV) of a company, calculated as its total assets
minus intangible assets (patents, goodwill) and liabilities. For the initial outlay of an
investment, book value may be net or gross of expenses such as trading costs, sales taxes,
service charges, and so on.
The formula for calculating book valuc per share is the total common stockholders' equity
less the preferred stock, divided by the number of common shares of the company. Book
value may also be known as "net book value" or "net asset value of a firm."

Understanding Book Value

Book value is the accounting value of the company's assets less company's liabilities. Where
book value reflects the total value of a company's assets that shareholders of that company
would receive if the company were to be liquidated. The term book value derives from the
accounting practice of recording asset value at the original historical cost in the books.
While the book value of an asset may stay the same time by accounting measurements, the
book value of a company collectively can grow from the accumulation of earnings generated
through asset use. Since a company's book value represents the shareholding worth,
comparing book value with the market value of the shares can serve as effective valuation
technique when trying to decide whether shares are fairly priced.
The book value is also known as the explicit value, and it can heavily influence a company's
implicit value (i.e., the personal perceptions and research of investors and analysts), which in
turn affects whether a company's stock price rises or drops.

As the accounting value of a firm, book value has two main uses:
1. It serves as the total value of the company's assets that shareholders would theoretically
reccive if a company was liquidated.
2. When compared to the company's market value, hook value can indicate whether a stock is
under- or overpriced.
Book value per share (BVPS) is a method to calculate the per-share book value of a
company hased on common shareholders' equity in the company. Should the company
dissolve, the book value per common share indicates the dollar value remaining for
common shareholders after all assets are liquidated and all debtors are paid. If a
company's BVPS is higher than its market value per share, then its stock may be
considered to be undervalued.
In personal finance, the book value of an investment is the price paid for a security or debt
investment. When a company sells stock, the selling price minus the book value is the capital
gain or loss from the investment.

Example of Book Value

A company spends $100,000 to buy a machine and subsequently spends an additional
$20,000 for additions that expand the production capacity of the machine. A total of $50,000
of accumulated depreciation has since been charged against the machine, as well as a $25,000
impairment charge.

• Value Stock
A value stock refers to shares of a company that appears to trade at a lower price relative to
its fundamentals, such as dividends, earnings, or sales, making it appealing to value investors.
A value stock will have a bargain-price as investors see the company as unfavorable in the
marketplace. Typically, a value stock has an equity price lower than the stock prices of
companies in the same industry. Value stocks may also sit within a sector that trades at a
discount to the broader market.
Risk and Return of Value Stocks
For all their potential upsides, value stocks are considered riskier than growth stocks because
of the skeptical attitude the market have toward them. For a value stock to turn profitable, the
market must alter its perception of the company, which is considered riskier than a growth
entity developing. For this reason, a value stock is typically more likely to have a higher
long-term return than a growth stock because of the underlying risk. A value stock may need
some time to emerge from its undervalued position. The risk of investing in a value stock is
that this emergence may never materialize.

Understanding Value Stock

A value stock is a security trading at a lower price than what the company's performance may
otherwise indicate. Investors in value stocks attempt to capitalize on inefficiencies in the
market, since the price of the underlying equity may not match the company's performance.
Common characteristics of value stocks include high dividend yield, low price-to- book ratio
(P/B ratio), and a low price-to-carnings ratio (P/E ratio). Investors can find value stocks using
the "Dogs of the Dow" investing strategy by purchasing the 10 highest dividend-yielding
stocks on the Dow Jones at the beginning of each year and adjusting the portfolio every year
thereafter.
In contrast to value stocks, growth stocks are equities of companies with strong anticipated
growth potential. A halanced, diversified portfolio will hold both value stock and growth
stocks. Investment managers refer to these as a blend fund.

Example of Value Stocks

As of June 2019, large money center banks represent value stocks, Bank of America
Corporation (BAC), JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), and
Citigroup Inc. (C) all trade at a significant discount to the market hased on earnings. For
example, Citigroup has a P/E ratio of 9.67 compared to 19.12 for the average S&P 500
company.
Investors can gain exposure to a portfolio of value stocks using exchange-traded funds
(ETFs). Three of the largest value ETFs hased on assets under management include the
Vanguard Value Index Fund ETF, the iShares Russell 1000 Value ETF (IWD), and the iShares
S&P 500 Value ETF. All three funds are specifically designed to track the price and yield
performance of U.S. large-cap value stocks

• Enterprise Value (EV)

Enterprise value (EV) is a measure of a company's total value, often used as a more
comprehensive alternative to equity market capitalization. EV includes in its calculation the
market capitalization of a company but also short-term and long-term deht as well as any
cash on the company's balance sheet. Enterprise value is a popular metric used to value a
company for a potential takeover.
Enterprise value (EV) could be thought of like the theoretical takeover price if a company to
be bought. EV differs significantly from simple market capitalization in several ways, and
many consider it to be a more accurate representation of a firm's value. The value of a firm's
debt, for example, would need to be paid off by the buyer when taking over a company. As a
result, enterprise value provides a much more accurate takeover valuation because it includes
debt in its value calculation.

EV as a Valuation Multiple
Enterprise value is used as the basis for many financial ratios that measure the performance
of a company. An enterprise multiple that contains enterprise value relates the total value of a
company as reflected in the market value of its capital from all sources to a measure of
operating earnings generated, such as earnings before interest, taxes, depreciation, and
amortization (EBITDA).
EBITDA is a measure of a company's ability to generate revenue and is used as an alternative
simple carnings or net income in some circumstances. EBITDA however, can be misleading
because it strips out the cost of capital investments like property, plant, and equipment.
Another figure, EBIT, can be used as a similar financial metric without the drawback of
removing depreciation and amortization expenses related to property, plant, and equipment
(PP&E). EBITDA is calculated. using the following formula:
EBITDA = recurring earnings from continuing operations + depreciation + amortization +
Interest + taxes

Example of EV
As stated earlier, the formula for EV is essentially the sum of the market value of equity
(market capitalization) and the market value of debt of a company, less any cash. The market
capitalization of a company is calculated by multiplying the share price by the number of
shares outstanding. The net debt is the market value of debt minus cash. A company acquiring
another company keeps the cash of the target firm, which is why cash needs to be deducted
from the firm's price as represented by the market capital.

1.3 MEANING OF BUSINESS VALUATION

business valuation is a general process of determining the economic value of a whole
business or company unit. Business valuation can be used to determine the fair value of a
business for a variety of reasons, including sale value, establishing partner ownership,
taxation, and even divorce proceedings. Owners will often turn to professional business
evaluators for an objective estimate of the value of the business. Several methods of valuing a
business exist, such as looking at its market cap, earnings multipliers, or book value, among
others.

The Basics of Business Valuation

The topic of business valuation is frequently discussed in corporate finance. Business
valuation is typically conducted when company is looking to sell all or a portion of its
operations or looking to merge with or aequire another company. The valuation of a business
is the process of determining the current worth of a business, using objective ures, and
evaluating all aspects of the business.
A business valuation might include an analysis of the company's management, its capital
structure, its future earnings prospects or the market value of its assets. The tools used for
valuation vary among evaluators, usinesses, and industries. Common approaches to business
valuation include a view of financial statements. discounting cash flow models and similar
company comparisons.
Valuation is also important for tax reporting. The Internal Revenue Service (IRS) requires
that a business is valued hased on its fair market value. Some tax-related events such as sale,
purchase or gifting of shares of a company will be taxed depending on valuation.
Valuations are an important part of business, for companies themselves, but also for investors.
For companies, valuations can help measure their progress and success, and can help them
track their performance in the market compared to others. Investors can use valuations to help
determine the worth of potential investments. They can do this by using data and information
made public by a company. Regardless of who the valuation is for, it essentially describes the
company's worth.

1.4 PURPOSE OF BUSINESS VALUATION:

Funding and Investments: If you are setting up a new business and are seeking capital or
investors, you may have difficulty showing your company's potential without a solid history.
A business valuation can be beneficial when searching for investments. Valuation may be
based heavily on your vision and your overall value in the market segment you are offering.
Sale of Business: As an entrepreneur, if you are planning to sell your business to a third party,
it is great idea to set a base line value for the business and develop a strategy to improve the
profitability to increase the value as an exit strategy.
Merger, Acquisition & Amalgamation: A Valuation is typically performed when a company
acquires another company, is targeted for acquisition, reorganizes its capital structure, splits
up or files for bankruptcy while in liquidation or reorganization. Having a buy-sell agreement
in place between multiple owners ensures a smooth transition of a business. Perfonning a
business valuation can help you determine whether the price you are being asked to pay is
fair.
Employee Stock Option Plans: An employee stock-ownership plan (ESOP) is an employee
benefit plan that invests in employer common stock. ESOPs provide capital, liquidity, and
certain tax advantages to those private businesses whose owners do not wish to go public. A
valuation must be performed annually for an ESOP. This valuation determines the price per
share for the beneficiaries of the ESOP plan. Shares of Employee Stock Ownership Plans
must be valued by an independent valuation expert on an annual basis to establish a fair stock
price.
1.5 DIFFERENT APPROACHES TO A BUSINESS VALUATION:
Income approach: This determines the value of a business based on its ability to generate
desired cconomic benefit for the owners. It converts future anticipated economic benefits into
a single present value amount. Discounted Cash Flow method is widely used method which
requires proper selection of the capitalization rate, discount rate and valuation multiples. This
approach is generally best suited for established, profitable businesses. The income approach
relies upon the economic principle of expectation: the value of business is based on the
expected economic benefit and level of risk associated with the investment. Income based
valuation methods determine fair market value by dividing the benefit stream generated by
the subject or target company times a discount or capitalization rate. The discount or
capitalization rate converts the stream of benefits into present value.
Market approach: This determines the value of a business in comparison to historic sales
involving similar businesses. Comparable Company Analysis and Procedent transactions are
typically used which requires estimation of pricing multiples. This approach is especially
used when valuing public companies (or private companies large enough to consider going
public). The market approaches determine value by comparing the subject company to other
companies in the same industry, of the same size, and/or within the same region.
Asset approach: This determines the of a business hased on the value of business's net assets.
The idea is to determine the business value based on the fair market value of its assets less its
liabilities. This approach is particularly used when valuing asset-intensive companies and
distressed entities that aren't worth more than their net tangible value. In considering asset-
based approach, the valuation. professional must consider whether the shareholder whose
interest is being valued would have any authority to access the value of the assets directly.

1.6 METHODS OF VALUATION

There are numerous ways a company can be valued. You'll learn about several of these
methods below.
• Market Capitalization
• Times Revenue Method
• Earnings Multiplier
• Discounted Cash Flow (DCF) Method
• Liquidation Value
 • Market Capitalization
Market capitalization is the simplest method of business valuation. It is calculated by
multiplying the company's share price by its total number of shares outstanding Market
capitalization is equal to the share price multiplied by the number of shares outstanding.
Since outstanding stock is bought and sold in public markets, capitalization could be used as
an indicator of public opinion of a company's net worth and is a determining factor in some
forms of stock valuation. Market cap only reflects the equity value of a company. A firm's
choice of capital structure has a significant impact on how the total value of a company is
allocated between equity and debt. A more comprehensive measure is enterprise value (EV),
which gives effect to outstanding debt, preferred stock, and other factors. For insurance firms,
a value called the embedded value (EV) has been used.
Market capitalization is used by the investment community in ranking the size of companies,
as opposed to sales or total asset figures. It is also used in ranking the relative size of stock
exchanges, being a measure of the sum of the market capitalizations of all companies listed
on each stock exchange. In performing such rankings, the market capitalizations are
calculated at some significant date, such as June 30 or December 31.
The total capitalization of stock markets or economic regions may be compared with other
economic indicators (e.g., the Buffett indicator). The total market capitalization of all
publicly traded companies in 2020 was approximately US$93 trillion.

Understanding Market Capitalization

Understanding what a company is worth is an important task, and often difficult to quickly
and accurately ascertain. Market capitalization is a quick and easy method for estimating a
company's value by extrapolating what the market thinks it is worth for publicly traded
companies. In such a case, simply multiply the share price by the number of available shares.
Using market capitalization to show the size of a company is important because company size
is a basic determinant of various characteristics in which investors are interested, including
risk. It is also easy to calculate. A company with 20 million shares selling at $100 a share
would have a market cap of $2 billion. A second company with a share price of $1,000 but
only 10,000 shares outstanding, on the other hand, would only have a market cap of $10
million.
A company's market cap is first established via an initial public offering (IPO). Before an
IPO, the company that wishes to go public enlists an investment bank to employ valuation
techniques to derive a company's value and to determine how many shares will be offered to
the public and at what price. For example, a company whose IPO value is set at $100 million
by its investment bank may decide to issue 10 million shares at $10 per share or they may
equivalently want to issue 20 million at $5 a share. In either instance, the initial market cap
would be $100 million.
After a company goes public and starts trading on the exchange, its price is determined by
supply and demand for its shares in the market. If there is a high demand for its shares due to
favorable factors, the price would increase. If the company's future growth potential doesn't
look good, sellers of the stock could drive down its price. The market cap then becomes a
real-time estimate of the company's value.
The formula for market capitalization is: Market cap = share price x shares outstanding

• Times-Revenue Method
The times-revenue method refers to a method of valuing a company. It applies multiples.
current revenues to arrive valuation. The times-revenue method is a valuation method used to
determine the maximum value of a company. The times- revenue method uses a multiple of
current revenues to determine the "ceiling" (or maximum value) for a particular business.
Depending on the industry and the local business and economic environment, the multiple
might be one to two times the actual revenues. However, in some industries, the multiple
might be less than one.

Understanding the Times-Revenue Method

Small business owners might determine the value of the company to aid in financial planning
or in preparation for selling the business. It can be challenging to calculate a business value,
especially if the value is largely determined by potential future revenues. Several models can
be used to determine the value, or a range of values, to facilitate business decisions.
The times-revenue method is used to determine a range of values for a business. The figure is
based on actual revenues over a certain period of time (for example, the previous fiscal year),
and a multiplier provides a range that can be used as a starting point for negotiations. In
effect, the times revenue method attempts to value a business by valuing its stream of sales
cash flows.
Depending on the period for which the revenue is considered or on the method of revenue
measurement employed, the value of the multiple can vary. Some analysts use the revenue or
sales recorded on proforma financial statements as actual sales or forecast of what future
sales will be. The multiplier used in business valuation depends on the industry.
Small business valuation often involves finding the absolute lowest price someone would pay
for the business, known as the "floor," often the liquidation value of the business assets, and
then determining a ceiling that someone might pay, such as a multiple of current revenues.
Once the floor and ceiling have been calculated, the business owner can determine the value,
or what someone may be willing to pay to acquire the business. The value of the multiple
used for evaluating the company's value using the times-revenue method is influenced by a
number of factors including the macroeconomic environment, industry conditions, etc.
 • Earnings Multiplier
The earnings multiplier, also called the price-to-carnings ratio (P/E), is a valuation method
used to compare a company's current share price to its per-share earnings. Earnings
Multiplier, known as the Price-to-Earnings Ratio, is a method to compare the current market
price of a share to carnings per share of the company. In simple words, it is a measure of
valuation in order to determine what you are willing to pay for every single amount of dollar
a company is able to earn. It is used as a valuation tool to compare the share price of a
company with that of similar companies. The earnings multiplier can be used to assess a
company's financial health. The price-to-earnings ratio of several companies can be compared
while making investment decisions.
The earnings multiplier calculates the return an investor will get against the invested amount.
Furthermore, a company's share price depends on the future value of the company issuing the
shares. It also shows the performance of a company compared to its industry counterparts.

Understanding Earnings Multiplier

The earnings multiplier can be a useful tool for determining how expensive the current price
of a stock is relative to the company's earnings per share of that stock. This is an important
relationship because the price of a stock is theoretically supposed to be a function of the
anticipated future value of the issuing company and future cash flows resulting from
ownership of that stock. If the price of a stock is historically expensive relative to the
company's earnings, it may indicate that it's not an optimal time to purchase this equity
because it's overly expensive. Furthermore, comparing earnings multipliers across similar
companies can help illustrate how expensive various companies' stock prices are relative to
one other.

• Discounted Cash Flow (DCF)

Discounted cash flow (DCF) is a valuation method used to estimate the value of an
investment based on its expected future cash flows. DCF analysis attempts to figure out the
value of an investment today, based on projections of how much money it will generate in the
future. This applies to the decisions of investors in companies or securities, such as acquiring
a company or buying a stock, and for business owners and managers looking to make capital
budgeting or operating expenditures decisions.
The purpose of DCF analysis is to estimate the money an investor would receive from an
investment, adjusted for the time value of money. The time value of money assumes that a
dollar today is worth more than a dollar tomorrow because it can be invested.
As such, a DCF analysis is appropriate in any situation wherein a person is paying money in
the present with expectations of receiving more money in the future.
For example, assuming a 5% annual interest rate, $1 in a savings account will be worth $1.05
in a year. Similarly, if a S1 payment is delayed for a year, its present value is 95 cents because
you nnot transfer it to your savings account to earn interest.
DCF analysis finds the present value of expected future cash flows using a discount rate.
Investors can use the concept of the present value of money to determine whether the future
cash flows of an investment or project are equal to or greater than the value of the initial
investment. If the value calculated through DCF is higher than the current cost of the
investment, the opportunity should be considered.

DCF Calculation
Calculating the DCF involves three basic steps-one, forecast the expected cash flows from the
investment. Two, you select a discount rate, typically based on the cost of financing the
investment or the opportunity cost presented by alternative investments. Three, the final step
is to discount the forecasted cash flows back to the present day, using a financial calculator, a
spreadsheet, or a manual calculation.

• Liquidation Value
Liquidation value is the likely price of an asset when it is allowed insufficient time to sell on
the open market, therchy reducing its exposure to potential buyers. Liquidation. value is
typically lower than fair market value. Unlike cash or securities, certain illiquid assets, like
real estate, often require a period of several months in order to obtain their fair market value
in a sale, and will generally sell for a significantly lower price if a sale is forced to occur in a
shorter time period. Liquidation value may be either the result of a forced liquidation or an
orderly liquidation. Either value assumes that the sale is consummated by a seller who is
compelled to sell and assumes an exposure period which is less than market normal.

Understanding Liquidation Value

There are generally four levels of valuation for business assets: market value, book value,
liquidation value, and salvage valac. Each level of value provides a way for accountants and
analysts to classify the aggregate value of assets. Liquidation value is especially important in
the case of bankruptcies and workouts.
Liquidation value does not include intangible assets such as a company's intellectual property,
goodwill, and brand recoguition. However, if a company is sold rather tiar liquidated, both
the liquidation value and intangible assets determine the company's going concem value
Value investors look at the difference between a company's market capitalization and its
gning-concern value to determine whether the company's stock is currently a good buy.
 • 1.7 INITIAL. PUBLIC OFFERING (IPO)
An initial public offering (IPO) or stock launch is a public offering in which shares of a
company are sold to institutional investors and usually also retail (individual) investors. An
IPO is typically underwritten by one or more investment banks, who also arrange for the
shares to be listed on one or more stock exchanges. Through this process, colloquially known
as floating, or going public, a privately held company is transformed into a public company.
Initial public offerings can be used to raise new equity capital for companies, to monetize the
investments of private shareholders such as company founders or private equity investors,
and to enable easy trading of existing holdings or future capital raising by becoming publicly
traded.
An initial public offering (IPO) refers to the process of offering shares of a private
corporation to the public in a new stock issuance. The transition from a private to a public
company can be an important time for private investors to fully realize gains from their
investment as it typically includes a share premium for current private Investors. Meanwhile,
it also allows public investors to participate in the offering
Becoming a public body entails major responsibilities and answerability to the investors,
investment governing bodies. It may also lead to changes in a company, including losing
management independence and power. In certain cases, an IPO could be the only way to fund
rapid expansion and development. Venture capitalists or entrepreneurs who want to profit
from their early investment may often influence a company's decision to go public. However,
not every company can just issue securities, and there are certain eligibility norms that a
company needs to fulfil hefore it can issue an IPO.
After the IPO, shares are traded freely in the open market at what is known as the live float.
Stock exchanges stipulate a minimum free float both in absolute ternis (the total value as
determined by the share price multiplied by the number of shares sold to the public) and as a
proportion of the total share capital (i.e., the number of shares sold to the public divided by
the total shares outstanding).
An initial public offering (IPO) is a very important phase in the development of anay
company because it gives them access to the public capital market. The IPO increases the
reputation and visibility of the issuing company. Thus, an Initial Public Offering (IPO) can be
defined as "The mechanism by which a privately owned company issues shares of its
ownership to the public for the first time."
1.8 HISTORY OF IPO
The first modem IPO occurred in March 1602 when the Dutch East India Company offered
shares of the company to the public to raise capital. The Dutch Fast India Company (VOC)
became the first company in history 10 issue bonds and shares of stock to the general public.
In other words, the VOC was officially the first publicly traded company, because it was the
first company to be ever actually listed on an official stock exchange. While the Italian city-
states produced the first transferable government bonds, they did not develop the other
ingredient necessary to produce a fully-fledged capital market: corporate shareholders.
The term initial public offering (IPO) has been a buzzword on Wall Street and among
investors for decades. The Dutch are credited with conducting the first modern IPO by
offering shares of the Dutch East India Company to the general public. Since then, IPOs have
been used as a way for companies to raise capital from public investors through the issuance
of public share ownership. Through the years, IPOs have been known for uptrends and
downtrends in issuance, Individual sectors also experience uptrends and downtrends in
issuance due to innovation and various other economic factors. Tech IPOs multiplied at the
height of the dot-com boom as startups without revenues rushed to list themselves on the
stock market.
The 2008 financial crisis resulted in a year with the least number of IPOs. After the recession
following the 2008 financial crisis, IPOs ground to a halt, and for some years after, new
listings were rare.
More recently, much of the IPO buzz has moved to a focus on so-called unicorns startup
companies that have reached private valuations of more than $1 billion. Investors and the
media heavily speculate on these companies and their decision to go public via an IPO or stay
private .

1.9 PROCESS OF IPO

Before setting up an IPO, those companies are considered to be private. As a private
company, the business has grown with a moderately small number of shareholders consisting
of early investors like the family, founders, and friends, and private investors such as venture
capitalists and angel investors. When companies reach a certain stage in their growth process
where they believe they have matured enough to deal with the regulations set by the SEC
along with the benefits and responsibilities it provides to their shareholders, they will begin
advertising the companies' interest in going public.
Usually, this certain growth for private companies occurs when the company has reached a
valuation of approximately $1 billion, which is also known as "unicorn status". At the same
time, private companies at various valuations with strong fundamentals and proven
profitability potential may also qualify for an IPO, depending on their market competition
and ability to meet the listing requirements. An IPO is a big step for a company since it
provides the company with multiple opportunities to raise a lot of capital plus a higher ability
to grow and expand themselves in the industry. The increased transparency and share listing
credibility can also be a factor assisting in obtaining better terms when companies are seeking
to borrow funds as well. IPO shares of a company are priced upon due diligence from the
company's board of directors.
When a company decides to go public, the previously owned private shares ownership
converts to public ownership, and the existing private shareholder's shares become the worth
of the public trading price.
The underwriting of shares can also include special provisions for private share ownership to
public share ownership. Commonly, the transition from a private to a public company is a key
time for private investors to cash in and earn the returns they were expecting to make a profit.
Private shareholders typically tend to hold onto their shares in the public market or sell some
or even all of them for profit. The public market opens up a massive opportunity for millions
of investors to buy shares in a company and contribute capital towards a company's
shareholder's equity.

5.

Transition

4.
Stabilization
IPO
3. Pricing
Process

2.Due
Diligence &
Significance

1. Select

Underwater

Step 1: Select an investment bank

The first step in the IPO process is for the issuing company to choose an investment bank to
advise the company on its IPO and to provide underwriting services. The investment bank is
selected according to the following criteria:
• Reputation
• The quality of research
 • Industry expertise
• Distribution, i.c., if the investment bank can provide the issued securities to more
institutional investors or to more individual investors
• Prior relationship with the investment bank

Step 2: Due diligence and regulatory filings

Underwriting is the process through which an investment bank (the underwriter) acts as a
broker between the issuing company and the investing public to help the issuing company sell
its initial set of shares. The following underwriting arrangements are available to the issuing
company:
Firm Commitment: Under such an agreement, the underwriter purchases the whole offer and
resells the shares to the investing public. The firm commitment underwriting arrangement
guarantees the issuing company that a particular sum of money will be raised.
Best Efforts Agreement: Under such an agreement, the underwriter does not guarantee the
amount that they will raise for the issuing company. It only sells the securities on behalf of
the company.
All or None Agreement: Unless all of the offered shares can be sold, the offering is canceled.
Syndicate of Underwriters: Public offerings can be managed by one underwriter (sole
managed) or by multiple managers. When there are multiple managers, one investment bank
is selected as the lead or book-running manager. Under such an agreement, the lead
investment bank forms a syndicate of underwriters by forming strategic alliances with other
banks, each of which then sells a part of the IPO. Such an agreement arises when the lead
investment bank wants to diversify the risk of an IPO among multiple banks.
An underwriter must draft the following documents:

Engagement Letter: A letter of engagement typically includes:

1. Reimbursement clause: This clause mandates that the issuing company must cover
all out-of-the-pocket expenses incurred by the underwriter, even if the IPO is withdrawn
during the due diligence stage, the registration stage, or the marketing stage.

2. Gross spread underwriting discount: Gross spread is arrived at by subtracting the

price at which the underwriter purchases the issue from the price at which they sell the issue.
Gross spread - Sale price of the issue sold by the underwriter - Purchase price of the issue
bought by the underwriter
Typically, the gross spread is fixed at 7% of the proceeds. The gross spread is used to pay a
foe to the underwriter. If there is a syndicate of underwriters, the lead underwriter is paid 20%
of the gross spread. 60% of the remaining spread, called "selling concession", is split between
the syndicate underwriters in proportion to the number of issues sold by the underwriter. The
remaining 20% of the gross spread is used for covering underwriting expenses (for instance,
roadshow expenses, underwriting counsel, etc.).
Letter of Intent: A letter of intent typically contains the following information:
1. The underwriter's commitment to enter an underwriting agreement with the issuing
company
2. A commitment by the issuing company to provide the underwriter with all relevant
information and, thus, fully co-operate in all due diligence efforts.
3. An agreement by the issuing company to provide the underwriter with a 15%
overallotment option.
The letter of intent does not mention the final offering price.

Underwriting Agreement: The letter of intent remains in effect until the pricing of the
securities, after which the Underwriting Agreement is executed. Thereafter, the underwriter is
contractually bound to purchase the issue from the company at a specific price.

Registration Statement: The registration statement consists of information regarding the

IPO, the financial statements of the company, the background of the management, insider
holdings, any legal problems faced by the company, and the ticker symbol to be used by the
issuing company once listed on the stock exchange. The SEC requires that the issuing
company and its underwriters file a registration statement after the details of the issue have
been agreed upon. The registration statement has two parts:
• The Prospectus: This is provided to every investor who buys the issued security
Private
• Filings: this is comprised of information which is provided to the SEC for inspection
but is t necessarily made available to the public
The registration statement ensures that investors have adequate and reliable information
about the securities. The SEC then carries out due diligence to ensure that all the required
details have been disclosed correctly.
Red Herring Document: In the cooling-off period, the underwriter creates an initial
prospectus which consists of the details of the issuing company, save the effective date and
offer price. Once the red herring document has been created, the issuing company and the
underwriters market the shares to public investors. Often, underwriters go on roadshows
(called the dog and pony shows lasting for 3 to 4 weeks) to market the shares to institutional
investors and evaluate the demand for the shares.
Step 3: Pricing
After the IPO is approved by the SEC, the effective date is decided. On the day before the
effective date, the issuing company and the underwriter decide the offer price (i.e... the price
at which the shares will be sold by the issuing company) and the precise number of shares to
be sold. Deciding the offer price is important because it is the price at which the issuing
company raises capital for itself. The following factors affect the offering price:
The success/failure of the roadshows (as recorded in the order books)
The company's goal
Condition of the market economy
IPO can be under-priced, overpriced or fairly priced. Abnormal Return Raw Return Market
Return
If the Abnormal Return is positive, then it implies that the IPO is under-priced.
If the Abnormal Return is zero, then it implies that the IPO is fairly priced.
If the Abnormal Return is negative, then it implies that the IPO is overpriced.
If the first day trading closing price is greater than the issue price, then the offering is
considered to be under-priced; conversely, if the closing price is lower than the offer price,
the IPO is considered to be overpriced. Overpricing is much worse than under-pricing. A
stock that closes its first day below its IPO price will be labelled a failure,
[POs are often underpriced to ensure that the issue is fully subscribed/ oversubscribed by the
public investors, even if it results in the issuing company not receiving the full value of its
shares.
If an IPO is underpriced, the investors of the IPO expect a rise in the price of the shares on
the offer day. It increases the demand for the issue. Furthermore, underpricing
compensates investors for the risk that they take by investing in the IPO. An offer that
is oversubscribed two to three times is considered to be a "good IPO."

Step 4: Stabilization
After the issue has been brought to the market, the underwriter has to provide analyst
recommendations, after-market stabilization, and create a market for the stock issued.
The underwriter carries out after-market stabilization in the event of order imbalances by
purchasing shares at the offering price or below it. Stabilization activities can only be carried
out for a short period of time - however, during this period of time, the underwriter has the
freedom to trade and influence the price of the issue as prohibitions against price
manipulation are suspended.

Step 5: Transition to Market Competition

The final stage of the IPO process, the transition to market competition, starts 25 days after
the initial public offering, once the "quiet period" mandated by the SEC ends.
During this period, investors transition from relying on the mandated disclosures and
prospectus to relying on the market forces for information regarding their shares. After the
25-day period lapses, underwriters can provide estimates regarding the earning and valuation
of the issuing company. Thus, the underwriter assumes the roles of advisor and evaluator
once the issue has been made.

Metrics for judging a successful IPO process

The following metrics are used for judging the performance of an IPO:

Market Capitalization: The IPO is considered to be successful if the company's market

capitalization is equal to or greater than the market capitalization of industry competitors
within 30 days of the initial public offering. Otherwise, the performance of the IPO is in
question.
Market Capitalization - Stock Price x Total Nuniber of Company's Outstanding Shares

Market Pricing: The IPO is considered to be successful if the difference between the
offering price and the market capitalization of the issuing company 30 days after the IPO is
less than 20%. Otherwise, the performance of the IPO is in question.

1.10 INTRODUCTION OF ZOMATO

Zomato was founded as Foodiebay in 2008, and was renamed Zomato on 18 January 2010
Zomato Media Pvt. Ltd. In 2011, it expanded across India to Delhi NCR, Mumbai,
Bangalore, Chennai, Pune and Ahmedabad. Zomato's quick growth can also be attributed to
its rapid expansion to countries other than India. Soon after its success in Delhi-NCR, the
company started branching out to cities like Pune, Ahmedabad, Bengaluru, Chennai, and
Hyderabad.
Zomato is a technology platform that connects customers, restaurant partners and delivery
partners. Customers can search and discover restaurants, view photos of food and the
ambience of the restaurant, read and write reviews, book a table and order food delivery.
Zomato is not just a regular food-tech company but a giant in this sector. They are present in
more than 500 cities in India and are spread in 25 countries in all. They don't only serve
individual customers like you and me but also restaurants by providing them industry-specific
marketing tools which enable them to acquire customers to grow their business.
According to App Annie's estimates, since 2018, Zomato App has been the most downloaded
food and drinks application in India in each of the last three years on iOS Appstore and
Google Play combined.
Zornate has 1.6one of the very partners and 3,50,174 active restaurant listings. Prime
membership is one of the features which are highly regarded by the people as it helps
customers to derive great discounts.
Currently, the food-tech giant has 14 lakh Zonato Pro members and 25,350 pro restaurant
subscribers.
Zomato charges a 20-25% commission from the particular restaurant for each order placed. In
some regions, the commission rate may vary from 5-7%.
Zomato received a total number of 909,6 million from different investors. Their recent
funding was from Private Equity in 2020. Info Edge is a leading investor of Zomato.

Overview Of Zomato
Zomate Limited is one of the leading online food service platforms in India. It connects
customers, restaurants, and delivery partners. ers. The company's business-to-consumer
(B2C) segment offers food delivery and dining out services. Customers can easily search and
discover restaurants, order food, reserve a table, and
make payments through Zomato's mobile application.
On the other hand, its business-to business (B2B) segment generates revenue through
Hyperpure. It supplies high-quality ingredients and kitchen products to restaurants. It allows
restaurants to buy organic vegetables, fruits, poultry, groceries, meats, seafood, and
beverages. Hyperpure works directly with farmers, mills, producers, and processors to source
these products.
Users are also able to access menu and images of those restaurants that do not possess their
own website as Zomato extends its facility to restaurant owners to list their menu, to increase
their business and promote any special menu through listing advertisements, etc. without
having an online presence.
The company also offers Zomato Pro, a customer loyalty program. The subscription- based
program offers privileges and discounts on the best restaurants across dining-out and delivery.
It is an interesting business model that allows Zomato to generate more revenue, and at the
same time, help restaurants drive sales.
The search engine of Zomato is designed so well that it displays only relevant restaurants
according to the keyword in search criteria. It connects more and more people to food and
also facilitates restaurants in enabling a viable ecosystem.
A Brief Background of Zomato
Two IIT Delhi graduate Deepinder Goyal and Parnkaj Chaddah laid the foundation of Zomato
in July 2008 which was initially launched as "Foodiebay", While working with Brain &
Company in Delhi, they observed a lot of people kept on waiting for a long duration just to
have a menu card to order food. While watching the constant demand of menu leaflets from
colleagues and of different restaurants, Deepinder came upon with an idea of digitalization of
paper menu in a single digital app which is more convenient to and easily accessible without
waiting for a longer time. This idea emerged as Foodiebay in which the website was uploaded
with soft copies of menu cards of different restaurants. Sooner their office colleagues started
using the same which conserved a lot of their time as it became easier for them to choose a
restaurant and order food using a single app platform. This gradually brought more traffic to
the website and subsequently, it was expanded for everyone,

From Foodiebay to Zomato

During the initial phase, Foodiebay was started in Delhi and later on it started operating in
other major cities of India such as Kolkata and Mumbai. The popularity of the brand became
huge as it received an enormous response from customers. This encouraged its founders to
enlarge the services of Foodiebay in international locations. To make the brand more
captivating among its customers, Foodiehay was transformed in "Zomato". This new name
was easy to remember and also it abolished name confusion with the eBay website. Founders
officially relabeled Foodiebay as Zomato in the year 2010. Headquarter of Zomato is in
Gurugram. As per the statistics of 2019, the total number of employees of Zomato is recorded
more than 5000 and monthly active users are listed as 70 million.

The Business Model of Zomato

The vigorous business model of Zomato played a crucial role in its growth and success.
Before discussing the Business Model of Zomato, let us first have a look at what exactly the
term Business Model is and what are its basic elements. A Business Model in an organization
is considered a structure that is based on concepts that support the feasibility of a product or
organization and demonstrates how an organization works, generates income, and how it
moves forward to achieve its ebjectives. So, a Business Model comprises all the processes
and policies that an organization adopts and pursues. Peter Drucker, the management guru
has defined a Business Model as a model that is expected to explain your customer, a value
that you ean add-on or create for your customers and strategies you can adopt to do that at
reasonable prices.
Zomato's Business Model is aimed at providing quality food services, information related to
restaurants, their ineaus and user reviews. The Business Model of Zomato consists of
poviding fond delivery services, information, user reviews and menus of partner restaurants.
It has created a revolution in industries doing food business by including different restaurants
and facilitating people to look for restaurants more conveniently.
Zomato's business model is incomplete without having a look at its core activities. Although,
its primary goal is to make restaurant searching easy and has various key activities such as:
1. Managing multiple networks.
2. Manage advertising and sponsored content
3. Enhance customer service
4. Increase brand image

1.11 INTRODUCTION OF FSN E-COMMERCE (NYKAA)

Nykaa is an Indian e-commerce company, founded by Falguni Nayar in 2012 and
headquartered in Mumbai. It sells beauty, wellness and fashion products across websites,
mobile apps and 84 offline stores. In 2020, it became the first Indian unicorn startup headed
by a woman.
Nykaa sells products which are manufactured in India as well as internationally. In 2015, the
company expanded from online-only to an omnichannel model and began selling products
apart from beauty. As of 2020, it retails over 2,000 brands and 200,000 products across its
platforms.
It is an Indian e-commerce company that focuses on redefining the beauty and personal care
system. The company has its headquarters in Mumbai, Maharashtra, and is operating under
the ownership of FSN E-Commerce Ventures. It focuses on the growth and expansion of
retail, cosmetics, beauty, fashion, grooming, and wellness sectors and supports more than
2000+ employees.
The company derives its name from the Sanskrit word Nayaka which means actress or always
carries the spotlight. It follows the tagline: "Your beauty is our passion and celebrates the
beauty, confidence, uniqueness, and self-discovery of every self- discovery woman".
The company strives to provide a joyful shopping experience through its authentic and
variety of products. It emphasizes becoming hold, better every day, satisfying customers, and
encouraging sustainable development. It is also the first unicorn startup company to sell more
than 2 Lakh products and receive permission from SEBI to issue an initial public offer.
The company also has two divisions: Nykaa Man and Nykaa Fashion, including men's
products and exclusive clothing. It also has a premium membership feature called Nykaa
PRO that allows the members to get exclusive products at special prices from the app.
About the Founder :
Now that we have a basic idea about the company Nykaa let's know about its founder.
Falguni Nayar is a 58-year-old Indian businesswoman and founder of Nykaa. She was born
and brought up in Mumbai, Maharashtra, and got married to Sanjay Nayar in 1987. She has
completed her graduation from Sydenham College of Commerce and posts graduation in
MBA Finance from IIM Ahmedabad.
She has worked as a consultant in AF Ferguson & Co and MD of Kotak Mahindra Capital
Company. She aims to take the retail and beauty industry to new heights and
achieveillionaires havithe online market. Falguni is one of the top self-made female Indian
billionaires having an estimated worth of $1.1 billion.

Products and Services:

Nykaa has a vast collection of more than 2 Lakh products covering 2400+ brands worldwide.
It has inventory-based warchouses in Mumbai, Pune, Kolkata, Haryana, and New Delhi. It
also has three offline stores called Nykaa Luxe, Nykaa beauty kiosks, and Nykaa on Trend.
The Luxe stores include all the international luxury brands like MAC, Dior, Huda Beauty,
and Nykaa on Trend section segregates the brands according to their popularity in every
country. The company also supports famous in-house brands like Kay Beauty, 20Dresses,
Pipa Bella, Masaba, Nykaa Naturals, RSVP, and Nykd by Nykaa.It covers various categories
like skin, hair, makeup, fragrance, appliances, grooming, natural, pet care, pop-ups, gift card,
men's store, mom & baby, and health & wellness. Popular brands include Adidas, Allen
Cooper, Innisfree, American eagle, Lakme, Anna
Claire, Baidyanath, Dr. Morepan, Bare Essentials, Dove, and Benefit Cosmetics. Adding to
the list is Bio-Oil, elf. Cosmetics, Bioderma, Blue Heaven, and Body care, Calvin Klein,
Caprese, Clean & Clear, Colorbar, Dabur, Elle 18, and Daniel Wellington. It also includes
products from Estee Lauder, Garnier, Faces Canada, Glam glow, Fabindia, Giordano, Herbal
Essence, INDYA, Helix, Jockey, Kredo, and Insight Cosmetics.
Brands like LA Girl, Nivea, Old Spice, Lino Perros, Lotus Herbals, Opium Eyewear, Park
Avenue, Skyska, Teen Beauty, and Van Heusen are also available. You can also shop for Van
Heusen, You Bella, Zero Gravity, Yellow Chimes, VWash, Wet n Wild, Voylla, Whiskers,
Vogue Eyewear, and Yardley London. Nykaa has a YouTube channel called Nykaa TV that
shares all the essential tips and information regarding beauty, styling, and cosmetics. It has
also organized some campaigns like Tinderella, Khoj, Rakshak, and Beauty in her Story,
Break TheHashtag, and What Makes You Beautiful. Famous personalities like Tapsee Pannu,
Laxmi Agarwal, Alia Bhatt, Katrina Kaif, and Jahnvi Kapoor are associated with the app.
CHAPTER TWO
LITERATURE REVIEW

The published work relating to the topic is reviewed by the Researcher. The relevant serature
is reviewed on the basis of Books, Periodicals, News Papers and Websites The detailed
review is given below:-
Mittal, Gupta and Sharma et al., studied the performance of IPOs across various sectors, over
different titne frames and tried to determine the intpact of performing sectors on -performing
sectors. The results of the study indicated that the public sector stocks performed well in both
short run and long run and outperformed other sectors too. The manufacturing sector
appeared to be performing the least in the short run as well as in the long run,
Arwah Arjun Madan, inhisarticle 'Investments in IPOs in the Indian Capital Market',
published in Bimaquest conclude that in the long run (five-year after listing), there is a drastic
fall in the return on IPOs returns; returns are found to he negative from the second to the fifth
year of listing.
Aggarwal, R., P. Conroy, "Price Discovery in Initial Public Offerings and the Role of
the Lead Underwriter", Journal of Finance, conclude that the price discovery process of initial
public offerings (IPOs) using a unique dataset. The first quote entered by the lead underwriter
in the five-minute preopening window explains a large proportion of initial retums even for
hot IPOs. Significant learning and price discovery continues to take place during these five
minutes with hundreds of quotes being entered. The lead underwriter observes the quoting
behaviour of other market makers, particularly the wholesalers, and accordingly revises his
own quotes. There is a strong positive relationship between initial returns and the time of day
when trading starts in an IPO.
Bhupal Sing, in his article "Changing Contours of Capital flows to India, published in
Economic and Political Weekly, pointed out that the most striking feature of change in the
cross-border capital flows to emerging market economies during the 1990s is the emergence
of portfolio equity inflows. It was further stated that portfolio investment in India started in
1993 by way of the equity and debt investment by FIls in the Indian Stock Markets and
Global offerings of ADRs and GDRs by the Indian Corporate. The Fils turnover accounts for
a significant share of the cash segment The stocks have potential for large volatility in the
asset prices. stocks.
Chowdhury, thed in Journal of their article "Stabilization, Syndication, and Pricing of POS",
published in Journal of Financial and Quantitative Analysts pot and Pricing of after-market
trading IPO, the underwriting syndicate, by standing ready to buy back shares at the offer
price (price stabilization"), compensates unidine realy to buy es post for the advere selection
cost they face in bidding for IPOs. This dominates ex ante compensation by underpricing.
The reason is that stabilization exploitett information about investor demand whereas
underpricing must be based on ex ante information. However, liquidity and syndication costs
constrain the use of stabilization which, in equilibrium, generates some underpricing as well.
We devedo bation formalizes this intuition and generates several empirical implications.
Jagannadham Thunuguntia, in his article "IPOs: More Misses Than Hits", published in the
Dalal Street Investment pointed out that, the age-old philosophy of understanding the
company and sticking to the basics should be given due respect. Let the buyer be made aware
that the investor has to put a price tag to his hard-earned money. There is a need for investor
education and awareness and the connections should be on a stable income than an becoming
rich overnight,
Jain, B. A., O. Kini, in their article "The Post-Issue Operating Performance of IPO Firms",
published in Journal of Finance point out that the change in operating performance of firms
as they make the transition from private to public ownership. A significant decline in
operating performance subsequent to the initial public offering (IPO) is found. Additionally,
there is a significant positive relation between post-IPO operating performance and equity
retention by the original entrepreneurs but no relation between post-IPO operating
performance and the level of initial underpricing.
Jain, B. A., O. Kini, in their article "Venture Capitalist Participation and the Post-Issuc
Operating Performance of IPO Firms", published in Managerial Decision Economics mention
that by comparing the post-issue operating performance of venture capitalist- backed IPOs
with a matched sample of non-venture capitalist-backed IPOs. We find that venture capitalist-
backed IPO firms exhibit relatively superior post-issue operating performance compared to
non-venture capital backed IPO firms. Further, the market of monitoring by venture
capitalists as reflected in the higher of the two. Finally, we find that proces for the quality of
venture capitalist monitoring are positively related to post-isane operusting performance.
James H. Lorie, Peter Dodd and Mary Mary Hamilton, Kimpton, in their bank. "Tive Stock
Market Theories and Evidence IPCAT Publication, Hyderabad, boke earnings of the
corporation world of no uncertainty, all sect serunt in capital. I by the rate at which those
earnings are discounted In a would offer a certain return, equal to the real rate
Jay R. Ritter, in their article "Initial Public Offerings", published tive Conte Contemporary
Face Digest summaries that Companies going public, especialy young companies, fice asker
that is subject to sharp swings in valuntions, Pricing deals can be difficult even in stable
market conditions, because insiders prostionably have more hou than potential outside
investors. To deal with these potential problenus, inaiket participants and regulators insist o
disclosure of material information.
K. C. John Sasi Kumar in their article "Indian Primary Market - A Review published in
International Journal of Contemporary Business Studies, concluded that the performance of
IPO's has been checring to the investors. Retail investors can go for the IPO market for safe
and secured investment. Even though the recent economic development has slowed the
process of IPO issue we could expect speedy recovery of both the economy and IPO
activities.
Mahesh Nayak, in his article, "Of Primary Concerns', published in the Businessworld. point
out that, IPOs have grown in size and entered their own brave new world. Further he states
that raising money in India's booming economy cannot be a onetime affair; if a company does
not maintain a good relationship with investors and rewards them well it may not able to go
back to them when it wants to raise money later.
M. S. Narasimhan and L. V. Ramana in their article "Pricing of Initial Public Offerings:
Indian Experience, with equity issues", published in Portfolio Management, Research Series
in Applied Finance, the ICFAI Journal of Applied Finance concluded that: a) Homogeneity in
the degree of underpricing across time perioda is observed. b) The esines day. c)
Underpricing is me underpriced is poster than in the beserved. b) funt trading day. c) the
derricing is not related to the time istuvalt be the one of the day and the first trading day.
They further concluded that companies offeringen the offer at a premium prefer to play it safe
in spite of the freedem granted to them operating at akaoptimum levels to derive a
satisfaction of the issue being fully subscribed may be a major factor in determining the
pricing process
Prithvi Haldea, CMD., Prime Database in his article "IPOs: More Misses Than Hits",
published in the Dalal Street Investment Journal pointed out that, IPOs in India have become
an instrument of trading rather than investment and a majority of people are parking their
money into such IPOs just to make a fast buck at the time of listing. So, in my view, they are
not the investors who are investing money as per the valuatious of the company by taking a
long-term horizon.
Subrahmanyam, A., S. Titman in their article "The Going Public Decision and the
Development of Financial Markets", published in the Journal of Finance mention that price
efficiency, the choice between private and public financing, and the development of capital
markets in emerging economies. Generally, the advantage of public financing is high if costly
information is diverse and cheap to acquire, and if investors receive valuable information
without cost.
Vikkraman P. and K.C. John Sasi Kumar in their article "Investor's preference on IPOs in
India" presented in the Global Business & Management Forum (GBMF) Second International
Conference, Dhaka, Bangladesh, find out the fundamental risk and returns involved in
investment of IPOs and the performance of initial public offers for the last five years. The
researcher assumes that the investments in IPOs are very safe, risk free, and make good
returns. It was found from the research that returns out of IPOs during the short period is very
promising .
CHAPTER THREE
RESEARCH METHODOLOGY

3.1 OBJECTIVES:
1. To understand about increasing the valuation of companies
2. To analyze the impact of IPO for Zomato and Nykaa.
3- To know the future trends for the companies to raise their financial valuation.

3.2 SCOPE OF THE STUDY

The study provides an overview of the business valuation process and additionally includes
research project which will help us in knowing regarding how the companies increase their
financial valuation through issuing Initial Public Offer (IPO). For a finer understanding about
business valuation through IPO this project is furthermore explained by the case study of two
companies named "ZOMATO" and "FSN E- COMMERCE NYKAA" and their increasing
financial growth through IPO respectively. The project includes the details about how
companies access the public market, raise funds and gain publicity.

3.3 LIMITATIONS OF THE STUDY:

The study of increasing valuation through IPO has certain limitations as it got into limelight
after the Zomato's IPO success. Before that, many startups rely on getting funding from
investors around the globe and try to raise their valuation. Increasing of valuation through
IPO is slowly being adapted by the new era startup's therefore some data cited in the paper
related to IPO's statistics is limited.
Zomato and Nykaa's financials were affected positively as well as negatively through the
raise of IPO. So, the paper is limited only to the data that shows the raising valuing of the
company and their IPO highlights in the market.
3.4 SIGNIFICANCE OF THE STUDY:
The study will help in understanding with multiple facts and figures regarding the actual
worth or value of the company in terms of market competition, nevet values, and income
values of the company and how to increase the valuation through different approaches will
lead to maximum growth of the urinpany. Also, the study significantly focuses on the
financial performance of the two companies stated here and how they managed to access the
public tracket and increase their valuatical une what the pre and post IPO statistics of the
company.

3.5 METHODOLOGY:
The research for this project is based on Secondary data analysis and gives in-depth
knowledge about the stated topic through websites such as INVESTOPEDIA
(Investopedia.com), UPSTOX (upstox.com) and many more blogs, articles related to the
topic. The study also has the statistics, numbers and their comparisons through annual reports
of the firm. Literature reviews are also cited from the annual reports. newspaper reports,
articles based on financial valuation, IPO process and their impact. Based on these resources
the project shows the complete analysis for the [POs of the two companies and also through
which the company got a boost in their valuation. All the data collected for the topic are well
arranged and mentioned according to their requirements.

3.6 NEED OF THE STUDY:

This study will help us understand the Pre-IPO and Post-IPO analysis of the two companies
which is ZOMATO and NYKAA. This will give us the information about how the companies
are using IPO strategies to raise capital from the sale of the shares, providing liquidity to the
company and investors and taking advantage of higher valuation. Also, the study will help to
know the future trends for increasing valuation.
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION
4.1 IPO ANALYSIS OF INDIA IN 2021:
IPOs above for domestic stock markets as India is poised to emerge as one of the top initial
public offers (IPO) destinations in terms of proceeds, a report by consultancy firm Ernst &
Young (EY) showed.
With investors largely displaying a bullish sentiment, companies mopped up a whopping $9.7
billion through initial share sales in the first 9 months of 2021, this is the highest amount that
companies have incurred via IPO proceeds for the 9-month period in two decades.
However, if we compare this with proceeds raised by global stock markets, the amount is just
around 3 per cent of the total funds raised during the same period.
Globally, there were 1,635 IPOs in the first 8 months of this year.
Indices rank 12th in no. of IPOs globally:
Even though the stock markets are witnessing an upsurge in the number of companies opting
to go public for raising funds, the domestic indices rank 12th in the wonders terms of no. of
IPOs in the last 1 year.
Seven IPOs were launched in the second quarter of the current fiscal and 17 came in the first
quarter.
In the SME market segment itself there were 11 companies which made their market debut on
the bourses in July-September period.
This represents an increase of 175 per cent as compared to the same quarter last year. In total,
72 IPOs hit the stock market during the January September period this year in India.

US Tops IPO Proceeds:

The report showed that the US topped the list in terms of IPO proceeds at stock exchanges
Nasdaq and NYSE, followed by China's Shanghai, and Hong Kong.
Others in the list are Shenzhen (SZSE and ChiNext), London (Main and AIM), Euronext and
Alternext, Korea (KRX and KOSDAQ), Sao Paulo (BM&F BOVESPA), Deutsche Borse
(Main and Scale), NSE and BSE, NASDAQ OMX and First North .
IPO index soared over 100%:

The boom in can be clearly seen in the fact that a gauge of fires that listed in the last 2 years
has outperformed the Nifty 50 index.

The S&P BSE IPO index is at its all-time high and has given returns worth 103,12 percent to
the investors in the year so far .

The markets are majorly witnessing a boom in tech start-ups that cater to the internet market.
Sebi has recently made it more appealing for such firms to list their shares in the domestic
indices.

Together, the tech start-ups have raised $8.8 billion in local IPOs so far in 2021.

4.2 IMPACT OF IPO ON VALUATION:

Pre - IPO

Even at the stage where a private company contemplates filing an IPO, the company's value
rises in the eyes of private investors for the following reasons:

The prospect of having access to the public market.

The prospect of being able to sell at a much higher market price after the company is listed.

At the stage where the company files an IPO, its value is determined as follows: (No of
shares held by private inve vestors + No of shares sold

Valuation of an IPO

After IPO

to the public) x IPO offer price

After entry into the public market

After the IPO cotnes to a close and trading starts on a stock exchange, based on the

demand - supply dynamics, the share price reaches a new bornal, called the market price.
Now, the company's value is equal to the market capitalization, that is, the price at which the
company is valued by the market.

As we have seen, the company's valuation depends on the number of shares multiplied by the
price of an individual share. The

number of shares to be offered is decided by the company. A figure is arrived at which does
not dilute the private investors' stake in the company substantially, while allowing the
company to raise required capital.

4.3 Reasons Behind Private Company Turning into Public Company:

The one big problem investors in a private company face when it comes to selling their stake
is liquidity. Shares they own can't be sold to another private investor

easily since it's hard to find someone willing to buy shares at the price they want.

This is because:

1. Other private investors want to make as much money as they can from their investments.
This brings down the offer price.

2. The buying investor has to be convinced about the company's prospects and growth

records.

3. The buying investor has to find a market to sell the acquired stocks and has to face the
same problems as mentioned above.

But, if there is a wide consensus among the public regarding the value of a company, with
close scrutiny by analysts vouching for its credibility and projected future growth and
potential buyers have the ability to sell the acquired shares to anyone in the public through
the share market, it makes shares of a company much more valuable.

Thus, one of the reasons companies go public is for liquidity, in other words, access to the
public market.

4.4 STUDY ON ZOMATO

THE FOOD DELIVERY MARKET:

Online food delivery is courier service system in which customers can order food and receive
desired food products at the doorstep. It involves software that allows restaurants to accept
and manage orders placed over the internet, Indian customers have the option to choose from
a wide variety of cuisine's options of different restaurants while browsing the website sitting
at home.

Factors that are propelling India's online delivery market are changing lifestyle and eating
habits. Hectic schedule and growing disposable income in India push peoplo towards ready-
to-eat food at a cheaper rate. Getting it quickly through one click has popularized food
delivery options, especially in urban areas. Besides, rising digitalization among millennial
and increasing proportion of working women in India are also driving the online food
delivery trends in India. So basically, this industry is selling convenience.

Data is of the essence. You have to gauge when and who orders what and why. Only then,
you're selling.

What if your favorite restaurant previously listed in Sw moves to Zo? What if Sw provides
you a dish at a 10% discount while Zo at 20%? Will you not switch? Is that even a question?
Of course, you will. Thus, in this industry, customer loyalty is hard to build but the priority is
to deliver freshly prepared food faster and safer.

However, it's a low-margin business. Or rather, margins and revenues don't have a strong
correlation. Because the only way you can scale up sales is by offering value- for-money
dishes with lesser commission and deeper discounts, which means taking a hit on the profits.
In fact, India's food delivery market is poised to grow at an incredible CAGR of 29% to reach
$21.41 billion by 2026. Almost 5x times in six years!

4.4.1 The Platform of Zomato

The Zomato brand is widely recognized across India. They have a widespread and efficient
hyperlocal network. The company made headlines when it acquired the Indian operations of
Uber Eats in 2020.

Recently, Zomato received approval from the Competition Commission of India (CCI) to
acquire a 9.3% stake in Grofers, an online grocery delivery platform.

Zomato have also ventured into the cloud kitchen space, whereby multiple brands/restaurants
can prepare food for takeaway or delivery.

The Zomato App has been the most downloaded application under the food & drinks
category in India during the last three years on both iOS App Store and Google Play.

As a result, restaurants pay certain fees for better visibility of their names on the platform.
Currently, the company has more than 1.69 lakh delivery partners and 3.89 lakh active
restaurant listings.

It has 15 lakh Zomato Pro members and -3.2 crore monthly active users. They are present in
more than 500 cities in India. Their operations are also spread across 24 countries, including
Australia, the United Arab Emirates (UAE), New Zealand, and Canada, Zomato has
commitied to 100% adoption of electric vehicles (EVs) for delivery by 2030.

4.4.2 Market supplies:

1. Food Delivery:

According to Redseer, Zomato is consistently gained market share over the last four years to
become the category leader in the food delivery space in India in terms of GOV from October
1, 2020 to March 31, 2021.

Zomato have experienced rapid growth in food delivery in India with the Orders increasing
by 13.2 times from 3 Crores in Fiscal 2018 to 40 Crores in Fiscal 2020 and Zomato GOV
(CGruss Order Value) growing 8.4 times from 1334 Crores in Fiscal 2018 to 11220 Crores in
Fiscal 2020.

2. B2B Supplies (Hyperpure):

Hyperpure is Zomato farm-to-fork supplies offering for restaurants in India

They source fresh, hygienic, quality ingredients and supplies directly from farmers, mills,
producers and processors to supply to the restaurant partners, helping them make their supply
chains more effective and predictable, while improving the overall quality

of the food being served.

Zomato started platforms in Hyperpure in 2019 and is growing rapidly. In the month of
December 2020, they supplied to over 6,000 restaurant partners across six cities in India .

Hyperpure helped them to increase their engagement with restaurant partners on its platform,
and in turn retain and grow loyalty with them.
4.4.3 Financial Overview

From the table given above, it is clear that the startup is incurring significant losses.
Zomato's ambitious expansion plans have caused a serious dent in their financial performance
(and will continue to do so).

It has to pump crores into advertising and promotional activities to drive customer growth.

They incur huge customer acquisition costs for offering frequent discounts and referral
bonuses. However, the company has posted an increase in average order value (AOV) during
the pandemic.

The AOV rose from Rs 264 in March-June 2019 to nearly Rs 400 in Q4 2020. Many

Indians have spent more on ordering their favorite food/beverages during lockdowns.

Unfortunately, there was still a major decline in the total number of orders during certain
months .
4.4.4 Zomato's Unit Economics

If Zomato delivered a dish to your bome, how much did it earn? Was it enough to cover what
it had spent to deliver that order? Or was it not? Get all answers inside its Unit Economics .

1. Apparently, in 2020, Zomato was losing ₹30.5 per order that it delivered. No wonder,
despite revenues of ₹2700 Crores, it was at a loss of 2400 Crores!

2. Coming in 2021, Zomato then gained 22.9 per order. While its unit economics

improved, its sales revenues fell by 23% to 2118 Crores! 3. Thus, the unit economics
improved in 2021. The company tried to increase its profit

margins.

4. The commission rate charged from restaurants was hiked (upsetting restaurant partners),
delivery charges increased & discounts reduced (losing customers). And that's why its sales
took a hit!
4.4.5 Zomato's Business Metrics

For a food delivery business, Average Order Value (AOV) is the essence. Because it'll cost
Zomato almost the same to deliver an order of any value, but a higher value order will bring
in more revenues, and thus, more profits. Money for Zomato is in how much expensive
dishes its customer's order .

Zomato's AOV now stands at around ₹400, a good jump from 2285 a year earlier. Sure,
Zomato has increased the commissing charges, thus raising the price of dishes.

You could also attribute it to the fact that people, who ate 'Meal for 1' at their workplaces, are
now back, working from home, probably ordering higher value Family Thalis'. This could be
a reason behind higher AOVs, as Zomato reports that dishes for more than three gained
traction last year. But again, Is it sustainable?

Hard to agree. Because once the music of the virus ends, people would return back to their
workplace, and the AOV dance might stop.

Let's look at the Gross Order Value (GOV), i.c., the total value of all transacted orders. In the
quarter ended June 2020, Zomato reported having made ₹29 per order. But the GOV dropped
to 21094 Crores, the lowest in two years! When Zomato tried to ramp up sales, its GOV
improved in the next two quarters, but then, it made less per order (22).

Thus, it is either sales volume or profitability for Zomato, "Both' is not an option.

Gross Order Value (GOV) is the product of Average Order Value (AOV) & the number of
orders. In 2021, if AOV increased but GOV fell, it's a no brainer that the number of orders
must have fallen too. In fact, both the number of transacting users & number of orders
plunged by more than 50%!
Long story deny the company is struggling to figure out a way to rainp up its sales volume
while not affecting its profitability. But it's a distant dream as of nuw

It's been over a decade since Zomato set its foot in the industry. But it hasn't turned a profit
yet. Not even in 2021 when its Unit Economics is positive. The reason being that the food
delivery industry requires heavy advertisement & sacketing costs, which

aren't even factored in the calculation of Unit Economics.

4.4.6 Zomato's Issue of IPO in Pandemic

While the pandemic has hit the services sector, particularly the hospitality segment, severely,
consumer internet companies like Zomato witnessed an improvement in business after the
initial lockdown last year.

According to the company's filings, the gross order value on its platform fell to Rs 1,093.63
crore for the April-June 2020 quarter from Rs 2,684.91 crore in January- March 2020 quarter.
It then rose to Rs 2,981 crore during October-December 2020

quarter, higher than the same quarter in the previous year. Furthermore, the first nine months
of financial year 2020-21 show an improvement in unit economics of Zomato's business, with
commissions and delivery charges

increasing compared to 2019-20, and discounts falling greatly

Zomato will utilize the net proceeds from the IPO for two main purposes:

1. Around 75% of the net issue will be used to fund organic and inorganic growth

initiatives.

2. The remaining 25% will be used to meet general corporate purposes.

Looking at the structure of the IPO, we can confidently say that Zomato will prioritise its
efforts on achieving growth objectives. Meanwhile, the promoters will continue to hold a
significant stake in the firm, which fosters a sense of confidence and validation in the
company's future prospects
4.4.7 Equity Ownership Prior To IPO:

The share of the equity owned but the original founders of the company has dropped
dramatically over time, as the company has had to raise capital to fund its ambitious growth
agenda, and Decpinder Goyal owns only 5.55% of the company's shares, prior to the IPO.
Uber's ownership in Zomato is a result of Zomato's acquisition of Uber Eats India, where
Uber received a share of Zomato's equity in exchange.

4.4.8 Zomato's IPO Detail:

Open Date: Jul 14 2021

Close Date: Jul 16 2021

Total Shares: 123 Cr

Face Value: Per Equity Share

Issue Type: Book Building

Issue Size: 9375 Cr.

Lot Size: 195 Shares

Issue Price: 72-76 Per Equity Share

Listing At: NSE, BSE

Listing Date : Jul 27 2021

The fresh issue of shares (of the face value of Rs 1 each) aggregates to Rs 9,000 crore.

The IPO also consisted of an offer for sale (OPS) by Info Edge India Ltd (a promotor), which
aggregated up to Rs 375 crore.

Individual investors could bid for a minimum of 195 equity shares (1 lot) and in multiples of
195 shares thereafter.

There was need a minimum of Rs 14,820 to apply for Zomato's IPO

The maximum number of shares that could be applied by a retail investor is 2,535 equity
shares (13 lots).

4.4.9 Zomato IPO Objective:

Zomato Limited will utilize the net proceeds from the IPO towards the following purposes:

1. Funding organic and inorganic growth initiatives.

2. To meet general corporate purposes.

As we move further, we will look into some statistics based on Zomato's IPO and it will help
us understand how companies like this faces challenges prior to their growth and make
decisions about overcoming problems and hold a docent position in their respective industry.
4.4.10 Zomato's Listing Date Highlights:

Zomato's share price closed the first day of trade at Rs 126 a peice, jumping 66% from IPO
price of Rs 76. On closing Zomato had a market capitalization of Rs 98,732 стоге.

Zomato saded the first day of trade 8% above the listing price. The stock performed marked
stealthy listing day, refusing to hover anywhere near the IPO price

Zomato shares made a strong stock market debut on Friday, closing the initial day of trade at
Rs 126 per share on the NSE. Zomato's stock price was up 66 per cent or Rs 50 from IPO
price of Rs 76. On opening, Zomato shares hit 20 per cent upper circuit at Rs 138, nearly
doubling IPO investors' money.
4.4.11 Zomato's Revenue Over the Time:

In conjunction with the other services it offers to restaurants, including consulting and data, it
suggests that while food delivery and advertising are the company's primary revenue
generators today, it has ambitions extending into the broader food business. Zomato has
grown at exponential rates for much of the last decade, with a surge in the number of cities
that it serves in India, especially in the last few years, from 38 in 2017 to 63 in 2018 to more
than 500 in 2021, extending its reach in urban areas .

Revenues did drop in 2020 , as COVID restrictions put a crimp on the restaurant business ,
but the quarterly data suggests that business is coming back .
4.4.12 Growth & Profitability Trends:

The company 020-21) these years of financial statements in tive prospectus (2018-19, 2019-
20 and 2020-21) and you can get a sense of the company's growth and profitability trends by
looking at the annual numbers:
Since the numbers for 2020 are distorted by the COVID shutdown, the company provides
quarterly numbers for the most recent quarters to argue that the growth reversal in 2020 will
be quickly put in the rearview mirror :

2020 2021 % Change

Q1 25,333.00 10,936.00 -56.83%
Q2 32,174.00 20,952.00 -34.88%
Q3 27,853.00 29,810.00 7.03%
Q4 26,849.00 33,130.00 23.39%

Zomato prospectus, with 2020 Q1 & Q2 numbers estimated

Note the sharp and predictable drops in gross orders in the first ten quarters of the 2021 fiscal
year, but also the increase in gross onders in the last quarter of FY 2021 (the first quarter of
the 2021 calendar year), as the shut downs cate up.

Total Market:

This is the assumption that will make or break Zornato as a company, since so much of the
potential in the company is dependent on how the food delivery restaurant market in India
evolves over the next decade. As noted in an earlier section, even allowing for robust growth
in India and improved digital access, it seems hard to see the total market exceeding $40
billion, with US $25 billion, in ten years, being a more likely outcome. (In rupee termas, this
will translate into a market that is roughly 1800-2000 billion INR.)

Market Share:

The Indian food delivery market is dominated by two big players, Zomato and Swiggy. with
a third player, Amazon Foods, that is unlikely to fade away. Assunting that the market will
continue to be dominated by two or three large players, although with lots of localized and
niche competitors who will continue to command a significant slice of the market. Expecting
any company to have a market share that exceeds 40% of this market is a reach, and that
Zomato will be one of the winners/survivors. In making this judgment, it is worth noting that
the online food delivery markets in other parts of the world (US, China) seem to be also
approaching a steady state of a few large players.

Revenue Share:

While the market share and total market yield the gross order value for Zomato, the company
posts only its share of these orders, as revenues. That number was 23.13% in FY 2020, but
dropped to 21.03% in FY 2021, as shut downs put a crimp on business. I will assume a partial
bounce back to 22% of GOV, starting in 2022, but the presence of Amazon Food will prevent
a return to higher values in the future.
Profitability:

The profitability of intermediary businesses (ride sharing, apartment resting, food delivery)
that use platforms to connect users to service or product providers is still being worked out,
but the contours of how this will play out are visible. The higgest expenses at these
companies are often on customer acquisition and marketing, and as growth scales down,
these expenses should decrease, as a percent of revenues, delivering a profitability bonus.

Reinvestment:

One of the advantages of being an intermediary business is that you can grow with relatively
little capital investment, defined in conventional form (as plant, equipment manufacturing
facilities). That said, reinvestment takes a different form for companies like Zomato, with
investments in technology and in acquisitions, driving future growth. Highlighting the
acquisitions that Zomato has made over its lifetime, with UberEATS India as its most recent
and most expensive illustration, but also noted that the company has burned through billions
in cash to get to where it is today.

Risk:

In terms of operating risk, the company, in spite of its global ambitions, is still primarily an
Indian company, dependent on Indian macroeconomic growth to succeed, and my rupee cost
of capital will incorporate the country risk. Zomato is a money losing company, but it is not a
start-up, facing imminent failure. On the plus side, its size and access to capital, as well as its
post-IPO augmented cash balance, push down the risk of failure. On the minus side, this is a
company that is still burning through cash and will need access to capital in future years to
continue to survive. Overall, I will attach a likelihood of failure of 10%, reflecting this
balance .
4.4.13 Zomato's Valuation Boosted Through IPO:

For FY20, the company posted a total revenue of ₹2,742.43 crore. Losses were almost the
same at *2,385.60 crore. The company spends a lot of money on outsourced support cost,
salaries, share-based payments and advertisement and sales promotion. In its previous
funding round, prior to the IPO, Zomato was valued at $5.4 billion (about 240,500 crore),
about 15 times its EV/sales for FY20. In fact, at its IPO price, the stock was valued at a
market capitalisation-to-sales ratio of 29.9x to its FY21 sales of ₹1,994 crore.
4.5 STUDY ON NYKAA

Established in 2012 Nykaa is an E-commerce platform that has a diverse product portfolio of
beauty, personal care, and fashion products, including their own in-house brands.

Nykaa not only provides an E-commerce platform for other brands, but it also has its own
brands that are sold via a a an e-commerce plationin. Within an online business, Nykaa has
got both websites and mobile apps.

As of March 2021, its mobile apps have cumulative downloads of 43.7 million. Now that's a
device Nykaa is quite popular in its category. The company also has an offline store with 73
physical stores in 38 citics of India as of March 2021.

If you look at the product portfolio of Nykaa for FY 21. Nykaa has two major categories: 1.
Beauty and personal carc

2.Fashion.

Within beauty and personal care, Nykaa offers an extensive range of nearly 2 lakh SKUs
from close to 2500 brands, across your makeup, skincare, healthcare, Bath and Body,
fragrance, grooming appliances, personal care, health & wellness category, etc.

It includes both domestic and international brands. Apart from this Nykaa also has its own set
of brands like your Nykaa cosmetics, Nykaa naturals, Kay beauty that is manufactured by
third-party contracts. Apart from its own platform, its brands are also

available on other third-party platforms.

Now within the fashion category, Nykaa has got around 18 lakh SKUs (Stock keeping units)
across 1350 brands that cater to men, women kits, and the home category. These products are
available across divisions, like your westem wear, Indian wear, footwear, bags, jewelry,
accessories, athleisure, home decor, bar, bed, and kitchen. It offers a mix of brands across
established national brands, international brands, luxury brands, and emerging laborers and
designers. Within the fashion category, Nykaa has six in-house brands.
4.5.1 Revenue Breakup

• The fashion business grew 295% year on year to Rs 11.5 crore, against Rs 2.9 crore.
While the revenues from the beauty business came in at Rs 22 crore against Rs 17.1
crore in the year-ago period, clocking a 29% growth.
• In terms of the business breakdown, Nykaa has a gross merchandise value (GMV) of
4046 crores in FY 21.
• It is basically the total value of the products being sold on its platform. we will
• discuss the growth separately in financial parameters. But as far as the business
breakup is concerned, out are these 4046 crores.
• This personal and beauty care contributes 83%, in the GMV, and fashion as remaining
17% contribution, although the fashion segment is growing faster.
• As per the records, the revenue in 2021 was 2440 crores INR (US$320 million).
4.5.2 Fundamental Analysis of Nykaa

1. Business Model

As the generation went on certain things got more attention among the new generation
people. Specifically, Cosmetics among the new generation. But the new generation didn't

get much time to spend on cosmetics in their daily lifestyle.

Meanwhile, the cosmetic industry had a boom but there was no trustable e- commerce
platform to buy cosmetics without reaching stores physically.

So, this was noticed by the founder of Nykaa and she made her business model focus on the
things that are lacking.

1. Convenient

Making it convenient for all to purchase where ever they are.

2. Trust

The products are 100% genuine sourced directly from the brand.

3. Price Range

Affordable price range to Lux products price range.

4. Wide customers

The primary focus of the company was three types of customers:

• The ones who had no time .

• The ones who were experts in beauty & makeup.
• The newbies .

5. At last, not least customer satisfaction.

2. Management

The founder & CFO of Nykas is Falgani Nayar, an IIM Alursedabad graduate & was the
Managing Director of Kotak Mahindra Capital Co. Nayar noticed a huge gap in the Indian
beauty market scenario- the demand was far more than the number of outlets in the country.

She along with her husband Sanjay Nayar started Nykaa, with $2 million. The company
controlled the majority of stakes which was around 95%

4.5.3 Nykaa in social media:

The name of the company "Nykaa" was actually derived from "Neyka", a Bengali word that
means someone in the spoilt.

It has its own youtube channel "Nykaa TV" to provide the best guidance for makeup or
campaign launch.

Janhvi Kapoor became the first brand ambassador of Nykaa's business under Nykaa
cosmetics.

And they released several "how-to " videos with her.

This attracts the young crowd which Nykaa is targeting.

Janhvi Kapoor plays an active role in social media campaigns through her Instagram handle.

High-quality content to showcase global trends, along with influencer marketing & social
media promotions solidify Nykaa as a key player in the industry.

Their remarketing game is also quite strong which they use social media mainly.
4.5.4 Other promotions:

Nykaa also collaborated with Femina to host the 'Nykaa.com Femina Beauty Awards' in 2015
and 2016 to create brand awareness .

The best thing about Nykaa is their discount & offers which go on nearly the whole year.

They have regular ongoing discount waivers from awesome makeup brands, skincare
products to attract customers.

4.5.5 Growth Prospects

• The company says that its valuation has grown more than 60x over the last eight
years.
• The company's focus on authenticity and commitment to customer experience has
drawn over 8 million customers, and 16 million unique visitors a month. In the year
2019, the company had a growth rate of 78%. The online BPC retailer's growth rate
has considerably got decreased over the years.
• However, the company obtained funding of net worth 14 million, to compensate. The
Mumbai-based company says publicly that it's the consumers who have helped
• the company to build its empire.
• It was a 12-year journey for them in 2018 when it said that growth came to them
slowly, as they started building stores, which were around 35 all over India.
• In fact, it touched 93% of the business-as-usual benchmarking against February 2020.
• The composted a profit of task in FY20, having generated a revenue of $1,983 crores;
it posted a profit of ₹78 lakh as against a loss of ₹21 crores in FY19.
• The revenue of Nykaa in the FY 2020 was $249.81 Million.
4.5.6 Nykaa IPO Details:

IPO Issue Opening Date: 28th Oct 2021

IPO Issue Closing Date: 1st Nov 2021

IPO Issue Price: ₹1085-₹1125

IPO Listing At: BSE, NSE

Retail Quota: 18.89%

IPO Issue Type: Book Build Issue

IPO Issue Size: ₹5,351.92 Cr

Offer for Sale : ₹4,721.92 Cr

Fresh Issue: ₹630 Cr

Face Value: ₹1 per equity share

IPO Discount: Emplyee ₹100

Promoter Holding Pre IPO: 54.22%

Promoter Holding Post IPO: 52.56%

BSE Code: 543384

NSE Code: NYKAA

The IPO price band is between Rs 1085-1125, the shares are available at a face value of Rs I,
and the lot size is 12 shares.

So, the total investment for one lot would be Rs 13,500, the issue size is Rs 5251 crores out
of this there is fresh equity of Rs 630 crore and the remaining Rs 4721 crore is Offered for
Sale where promoters are diluting their stakes, so the majority of money from the IPO would
go into the promoter's pocket.

The 630 Crore raise from the IPO would be used for setting up new retail stores, setting up
warehouses, repayment of certain debt, and general corporate expenses out of this IPO 75%
of the issue size has been reserved for qualified institutional buyers, 10% for retail investors,
and the remaining 15% for non-institutional investors. In terms of market cap at a price band
of rupees 1125, the company would be valued at rupees around 52,000 crores.
4.5.7 Nykaa's Objective for issuing IPO

1. To invest of new detail storenely FSN Brands antior Nyikan Fashion for funding 1 the set-
up new

2. To meet capital typenditures incurred by the company and invest in certain subsidiaries
i.e., Nykaa E-retail, Nykaa Fashion and FSN Brands to fund new warehouse setup.

3. To make repayment of prepayment of certain borrowings availed by the company and

subsidiaries, namely Nykaa E-retail.

4. To meet expenses relating to brand awareness and visibility.

5. To meet general corporate purposes.

4.5.8 Shareholding Pattern:

4.5.9 Nykaa Share Price Performance

• As of December 2021, company promoters held 52.56% stake in NYKAA, with no

shares having been pledged. To know more, check out the latest shareholding pattern
of NYKAA.

• NYKAA has not declared any dividend for the financial year ending March 2021. For
more details, check out NYKAA dividend history.
• Over the last one year, NYKAA share price has moved up from Rs 0.0 to Rs 1,399.3,
registering a Gain of Rs 1,399.3 or around 0.0%.
• Overall, the S&P BSE SENSEX is up 11.9% over the year.

4.5.10 Financial Review of Nykaa:

The total revenues increased by 38% to Rs 2452 64 crore in FY21 From Rs 1777.85 Crore
during FY20. This was due to an increase in the sale of products and sale of services asa
result of increasing online shopping by consumers in the beauty and personal care vertical as
well as the launch of multiple product categories and brands as part of a fashion offering.

Nykaa had reported a net profit of Rs 62 crore for the financial year 2020-21 (FY21) on
revenues of Rs 2,440 crore and GMV of $540 million. Through its IPO, Nykaa has raised Rs
630 crore, which will be used to increase its brand awareness, setting up of new retail stores
and warehouses, and to repay its debt.

The Issues reported PAT of Rs 61.95 crore for FY21 against losses of Rs (16.34) crore and
Rs (24.54) crore for FY20 and FY 19 respectively. However, the EBITDA has been positive
throughout all the last three fiscals. A growing trend can be seen in the EBITDA margins
over the last three fiscals from the financial table.

Title Q1FY22 FY2021 FY2020 FY2019

Total Revenue 821.71 2,452.64 1,777.85 1,116.38
Revenue from 816.99 2,440.89 1,767.53 1,111.39
operations
PAT 3.52 61.95 -16.34 -24.54
EBITDA 26.94 161.43 81.05 20.51
Total Assets 1,631.48 1,301.99 1,124.48 775.66
EBITDA 3.30% 6.61% 4.59% 1.85%
Margin (%)
Net Profit 0.43% 2.53% -0.92% -2.20%
Margin (%)
Valuation and Peer comparison

With an EPS of 1.39 as of 31 March 2021, the issue is priced S09 times at the upper price
band of Rs 1125 per share. The issue appears to be highly overvalues. The market cap of the
IPO amounts to Rs 53300 crore. Price to book value is 72.12 at NAV of Rs 15.47 as of 31
Mar 2021.

There no listed peers of the company as per the RIP. In the BPC Market and Fashion Market
in India, Nykaa competes with organised multi-brand and exclusive retailers, unorganized
merchants, horizontal live platforms like Amazon, Flipkart and Paytm Mall among others,
and vertical online platforms such as Myntra, Purple, and Myglamm among others.

4.5.11 Nykaa's Income and Expenses Statistics:

A closer look at the financial performance for FY21. shows tina Nykaa's growth has been
supported by higher average ticket size or order values from a chunk of its existing
customers.

Almost 90% of the platform's income is earned from sale of products on the marketplace.

Nykaa's annual unique transaction customers grew marginally from 5.3 Mn in FY20 to 5.6
Mn in FY21, compared to FY20, and order volume grew by a mere 0.1 Ma year on year, but
its average order value (AOV) jumped 35% from INR 1,448 to INR 1,963 during this time.

The platform had witnessed a 51% increase in transacting customers and a 35% growth in
order volume in FY20, compared to FY19 although AOV remained flat during the time. This
indicates that new customers may not have added significantly to the platform's sales. What
we need to watch is whether customers will continue this increased spending as the pandemic
impact wanes, and as more and more D2C brands and marketplaces focus on the beauty and
fashion categories. The remaining 10% of Nykaa's income is derived from marketing services
to sellers on the marketplace. This component also grew around 38% during the past fiscal
and 33% between FY 19-FY20.
Another point to be noted is that while the AOV has improved as well as Nykaa's gross
merchandise value (GMV) or total cost of products sold, it has not converted to a similar
growth in gross margin. Higher gross margins means that the company is making more
money on each product sold.

Nykaa's GMV soared 50% from FY20 to FY21 to INR 4,045.9 Cr but revenue from
operations only jumped 26% during the same period. Nykaa reported a marginally lower
gross profit margin of 39% in FY21 compared to 42% in FY20.

4.5.12 Nykaa's Cost Breakup:

Cost of goods sold increased by 46.70% to INR 1,487.8 Cr during FY21 from INR 1,014.2
Cr for FY20, primarily due to an increase in sale of products that Nykaa purchased from
brands or their distributors and manufactured under its owned brands, it stated in its DRHP.

In FY21, Nykaa's share of other expenses increased by 6.57% to INR 507.9 over FY20 due to
higher freight and packaging costs. Meanwhile marketing expenses during the fiscal were
down by 19% year on year.

The company witnessed 3 lakh additional transacting customers during the fiscal year when
marketing spends were down due to the pandemic. In contrast, in FY20 its marketing spend
was 34% higher thenFY19 and it added almost 2Mn transacting users showing how deeply
retail marketplaces depend on advertising for reach.
What is interesting is that Nykaa has reduced the share of expenses on finished goods that it
was purchasing from 68% in FY19 to 62% in FY21. The company has not shared details
about how its in-house brands and private labels have contributed to the business, but it is
likely that this is the reason for lower purchases. This is also backed by the fact that spending
on raw materials has doubled from INR 17.3 Cr to INR 38.2 Cr during the same time.

4.6 Zomato, Nykaa & Paytm to Enter Nifty Next 50 Indices:

Nifty Next 50

The NIFTY Next 50 is an Indian share market index which represents 50 companies from
NIFTY 100 after excluding the NIFTY 50 companies

• New age stocks Zomato, Paytm and Nykae, that became public last year, with wow
The a part of the Nifty Next50 index following the seshuttle of the Natio Exchange
(NSE) index.
• Food delivery major Zomato, digital payments cornplay Paytne and e-commerce
player Nykaa brought out their IPOs in 2021 and garnere hage invester stierion
• Their inclusion in the Nifty Next 50 comes after the Index Maintenance Sub
Committee Equity (IMSC) of the NSE decided to twerk the eligibility criteria of the
Nifty equity indices.
• As per the new eligibility criteria, the constituents should have a minden listing
history of one calendar month as on the cut-off date vs earlier requirement of 3
months.
• The revised list of Nifty Next 50 will be effective from March 31, 2022 and along
with Zomato, One97 Communications (Paytın), FSN E-Commerce Ventures (Nykaa),
it also includes SRF, Indian Oil and Mindtree.
CHAPTER FIVE

SUGGESTIONS AND CONCLUSIONS

5.1 SUGGESTIONS

For startups, the path to becoming that million dollar basis is paved with countless
challenges. First, they need to find a winning idea and validate it. After that they need keep
innovating and improving the product in order to stay ahead of the competition Once they
brave successfully scaled, they rights decide to offer in their shares to the public. However,
all the startups have one ting common - they go through the same life cycle and development
stages.

The IPO routes

If you are planning to take the IPO route, just remember that it will we happen overnight. It
can take around 5-7 years along with plenty of money. So, before you decide to go public, be
clear on why you're doing it and how it's going to help improve your product and grow your
business.

We have mentioned a few factors that will help you decide whether your business should take
the IPO route or not.

1. Predictable financial growth: Accurate financial projections are tine key to efficient
business strategy planning. It helps analysis evaluate the company and give important
indicators regarding the company's overall financial performance. If your company's financial
growth rate is consistent and high, public investors will be willing to invest in your business.
And this means that you can go public

2. Having the best executive team: You should consider a team that has experience of being a
part of a public company. In addition to a strong current team, you should estimate the need
of expanding your finance and accounting staff to aid the process of going public. Also, you
must partner with the most skilled software developers that know how to digitize and prepare
a private company for going public.

3. Reports are always audit-ready: Your quarterly report should consistently be released on
time and always audit-ready. When your financial reports become forecastable public.
consistent, it shores good place to consider going public.

4. Having a strategic roadmap: A strategic roadmap is a blueprint of a company's investment

growth chart. It provides an operating strategy for growing business for providing investment
returns which the prospective shareholders want from a public company.

5. Backup plan for delayed or IPO: Business IPOs are expensive and risky Having a backup
plan for a delayed IPO-or possibly no IPO-is a must. Before going public, make sure to
consider all the above-mentioned factors. This decision can have a huge impact on your
business. So, think wisely before going forward.
Knowing when the company is IPO ready

If you have decided that it's now time to go public, you nood to follow a few sites to get IPO
ready. These steps will ensure that you don't commit any mistakes in your journey and
receive fundings without any hassle.

Below are the steps that you must undertake to go public via an IPO process:

1. Hire the best development team: Selecting the best development team to handle your
product development needs is vital for the success of your business. The success of an IPO
depends entirely on the product you are selling. So, we recommend choosing the best
software development agency for your product needs.

2. Select an investment bank: The banks act as mediators between the скорейсь Looking to
issue an IPO and the investors. They carry out a processes like marketing document
preparation issuance, filing, documentation, etc. Apart from investment bank, you need to
hire a lawyer as well.

3. Perform due diligence: The underwriters, haaks, and lawyers work together to conduct an
in-depth audit of the company. Their review includes tax, financial, customer verifications,
etc. The intent is to create complete transperancy in the company's operations and presume
risks.

4. Build IPO prospectus and file registration: The next step is to build an IPO prospectus
using due diligence information. It will highlight the company's strength market share,
financial investments, and products. You also need to file complete registration statement
with the Securities and Exchange Commission (SEC), SEC reviews and comments within 30
days. After this process, companies complete the initial listing application round.

5. Pre-IPO and Roadshow: Bankers and management teams hold a "roadshow". It is a series
of presentations in which they market the IPO to prospective investors. It usually takes place
when they first announce the offered price range and size of the shares. The intent is to gather
interested investors for driving up the initial sales price.

6.Initiate Trading: The next step is that bankers set up a price determining the initial share
value. After a few days, the IPO closes, and stakeholders release their shares. After the shares
have been released, investors who purchased the shares get an allocation, and the public
trading officially begins.

Thus, these were some important suggestions a company should take into consideration while
thinking of increasing their financial valuation through IPO.

5.2 CONCLUSION

➤ Initial public offer (IPO):

• Every company planning to come for IPO has to singly with all the s mentioned
procedure.
• IPO is one of the forms of raising the capital and which is the effective one though it
has defects.
• As the price factor plays major role along with the time of the issue, every company
must specify the proper pricing strategy for the shares
• Merchant banker also plays a significant role in an IPO process by operating the IPO
and looking into various aspects.
• In order to succeed in the fund raising through IPO route one has to be troigh with
DIP guidelines. As the investor protection is important, the company has to ensure
investors by offering good prospects in the prospectus.
• Before coming to an IPO every company has to have a good track record of financial
performance.
• SEBI is the regulator for all IPOs it has to ensure its due diligence in issue of shares.
• The utilization of the funds from IPO is significant and as per the objective mentioned
in prospectus.
• Listing is important for the company on the stock exchange, so it has to be done with
proper pricing.
➤ ZOMATO:

• Zomato's IPO is very likely to get oversubscribed on doubt about that day itself. There
is no doubt about that.
• It is a brand that most of us love, respect, and rely on.
• A quick interview with some of Zomato's delivery partners in our area gave us an idea
that they are happy with all perks and remuneration.
• There is a lot of room for growth in the food services industry in India, and Zomato
will continue to expand its operations.
• They have announced strategic plans to scale up the Hyperpure and Zomato Pro
offerings as well.
• Due to oversubscription and a favorable grey market premium (GMP), investors of
the IPO are likely to receive substantial listing gains.

➤ NYKAA:

• Overall, if we conclude Nykaa is in the business of online beauty, personal care. and
fashion industry, and among the leader in the business with almost 2 million SKUs
and around 4000 brands on its platform.
• It also has its own range of private label brands. As far as future growth is concerned,
there is ample room for growth for online beauty, personal care, and the fashion
industry.
• The key growth drivers include your rising adoption of online shopping, increasing
penetration of smartphones and the internet, huge young population that aspires to
look good, and the rising influence of celebrities and social media influencers that
attract the young generation.
• Now as far as valuation is concerned, there is no traditional parameter to gauge the
valuation. But the current IPO valuations are highly overstretched.
• For long-term investors, it gets very tricky, as on one side company is fundamentally
strong and well-positioned with its leadership in the beauty and personal care category
with very good growth prospects. But on the other side, it is very expensive.
• Firstly, for the long-term investment, there are many good companies already
available in the market that also have a bright growth prospect and are available at a
decent valuation. So, for long-term investment in Nykaa one has to be careful at the
current valuation.
CHAPTER SIX

BIBLIOGRAPHY

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• https://www.investopedia.com/terms/v/valne.asp
• Initial Public Offering (IPO) Definition
• https://www.investopedia.com/tenns/i/ipo.asp
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• https://en.wikipedia.org/wiki/Zomato
• Zomato IPO review (Avoid)
• https://www.chittorgarh.com/ipo review/zomato-ipo/3103/
• Nykaa - Wikipedia
• https://en.wikipedia.org/wiki/Nykaa
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• https://www.chittorgarh.com/ipo_review/nykaa-ipo/3164/
• What's The Story of Zomato: Origin, Journey and Evolution?
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• Business Model of Zomato StudiousGuy
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• zomato-ltd-rhp.pdf
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• Nykaa: Case Study, Company Profile, Founding Team Members, And Many More.
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report-2021/
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526755.pdf
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• https://investorzone.in/ipo/zomato-ipo/
• Zomato Limited IPO-Fundamental Analysis - FinancePost
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| SPTulsian.com
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• Zomato IPO Review 2021-Should You Apply for Zorate IPO?
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• Musings on Markets: The Zomato IPO: A Bet on Big Markets and Platforms
https://aswathdamodaran.blogspot.com/2021:97/the-zomato-ipo-bet-en-big-
• markets-and.html
• FSN IPO Note-202110261236222871145.pdf
• https://www.hdfcsec.com/hsl.docs/FSN%20[PO%20Note-
202110261236222871145.pdf
• Nykaa Case Study: History, Valuation, Product, Services & Growth
• https://theindianpreneur.com/nykaa-case-study
• IPO Statistics and Charts | Stock Analysis
• https://stockanalysis.com/ipos/statistics/
• From MVP to IPO: How to scale your startup business?
• Initial Public Offer & Analysis a Study on Reliance Power & GMR IPO-1000
Projects