Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

Think Initial Public Offers (IPOs) are a sure-shot, quickfire method to make a quick buck? If so, then investing in some of India's biggest IPOs to date would have created multiple millionaires. However, if the data is to be believed, 18 out of India's top 30 IPOs by way of size have failed to deliver on the returns front. Recent data from Capitalmind PMS suggests that of all the mega IPOs India has seen in the past 2 decades, only 12 IPOs i.e. stocks of 12 companies have delivered more returns that what you would have received, had you bought and held your investments in Nifty500(which invests in biggest 500 companies by market size). Infact, Paytm (54%), <keyword id="20024191" type="General" weightage="20" keywordseo="Reliance-Power" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Power" meta.hostid="261" meta.entityid="Reliance Power">Reliance Power</keyword> (81%), General Insurance Corporation (2%) actually generated negative total returns to date. The only outliers in the list of top 10 IPOs were Zomato (listed in July 2021) and Coal India (listed in April, 2010), which managed to generate excess returns i.e. more than what was generated by Nifty500. While Zomato's total return to date, which is considered a comprehensive gauge of a stock's profitability, stands at 265%, Coal India total returns are a massive 443%. In these cases, had you simply bought and held the Nifty500 index for a similar duration, your returns would've been 73%, and 435% respectively. Also, 5 of the biggest IPOs India has ever seen (Bajaj Housing Finance, Bharti Hexacom, Brainbees, Ola Electric) have come in the last 2 years. In some cases, having stayed put in your index investments would have yielded you far better returns. Consider this, FSN E-Commerce, Nykaa's parent company, listed on the exchanges on November 2021. Its total returns till date have been 2%, while had you invested in Nifty500 index, your returns would've been 53%. Similarly, the total returns to date on Bandhan Bank's stock, which listed in March 2018, was a negative 43%. But, the index has delivered a whopping 163% returns during the same time. Hits and Misses <table class="redcator-table-advance"><tbody><tr><td>Company Name</td><td>Total Returns to Date (In %)</td><td>CNX (Nifty500) Returns (In %)</td></tr><tr><td>Reliance Power (Feb 2008)</td><td>-81</td><td>961</td></tr><tr><td>Zomato (July 2021)</td><td>265</td><td>73</td></tr><tr><td>Gland Pharma (November 2020)</td><td>14</td><td>124</td></tr><tr><td>NHPC (September 2009)</td><td class="se-table-selected-cell">389</td><td>961</td></tr><tr><td>Indian Railways Finance Corporation (January 2021)</td><td>582</td><td>109</td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: CapitalMind PMS <h2>Surge in IPOs? Not really </h2>It is impossible to overlook the sheer number of public offerings seen in the Indian markets over the past 2 years. Around 600 share sale offers have already hit the market since 2023. Out of these, 335 have come in this year, as of October 2024. While over Rs 50,000 crores have been raised by these share sales so far since 2023, only 22% of these funds raises have come from companies who are hitting the market for the first time i.e. bringing out their IPOs. The rest have come from already listed companies seeking to raise more funds. The biggest IPO that India has seen to date, that of <keyword id="19906087" type="General" weightage="20" keywordseo="Hyundai" source="keywords" meta.keywordsubtype="org" meta.entityname="Hyundai" meta.hostid="261" meta.entityid="Hyundai">Hyundai</keyword> Motor India, closes for subscription today. With an offer size of Rs 27,870.16 crore, it is 35% bigger than the previous biggest IPO in the country(LIC in May 2022). As of 12:30 pm today, Hyundai's offer had been 87% subscribed, with significant interest from QIBs and employees. At 0.43x, participation of retail investors remained largely subdued. Notably, an IPO is considered cancelled and withdrawn, if it fails to meet the 90% subscription threshold.

Do large IPOs guarantee large returns? Data suggests that 18 of India's biggest 30 IPOs did not generate solid returns

Over the past few months, there’s been a lot of brouhaha about the lagging pace of bank deposits in India. Simply put, the rate at which Indians are depositing their hard-earned money in banks has been falling constantly, and some blame the increasing financialization of household savings in the country, or the rising preference of Indians towards mutual funds and shares. So, the hypothesis is that people are choosing to invest more in mutual funds and the Indian equity markets through direct investments, IPOs, or NFOs, the money flowing into Indian banks in the form of deposits is slowing down. But is that really the case? <h2>A crisis or a phase?</h2><keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword> data suggested that for the quarter ended June 2024, bank deposits grew at 11.7%. On the other hand, credit growth has outpaced this at 15%. This means that the outflow from banks as loans is far greater than the inflow into them in the form of deposits in Q1 of FY 2024-25. The situation largely saw cut-copy-paste in the first week of September as well, with loans registering a 13.3% YoY growth during the period, while deposits rose only 11.1%. This gap has only been widening for the last 3 years. Since deposits are how banks gather assets to further lend and earn interest income as a consequence, even a slight dip could set the alarm bells ringing for banks, and rightfully so. And truth be told, mutual funds are indeed taking on bank deposits in a big way. Per a report by <keyword id="20250971" type="General" weightage="20" keywordseo="franklin-templeton" source="keywords">Franklin Templeton</keyword>, in August 2024, the AUM (assets under management) of Indian mutual funds, or the total funds managed by them, stood at 31.3% of total bank deposits in the country, up from 24.20% during the year-ago period. As of August 2024, the AUM of mutual funds stood at Rs 66.17 lakh crore, an all-time high. But all said and done, is this really the reason why the rate of bank deposits is falling behind? SBI has dismissed this to be a “statistical myth”, and experts point out that since equity and fund houses also keep the cash in their respective bank accounts, there’s no cause for concern. So, is financialization really to be blamed for the trailing tempo of deposits? Or is something else happening behind the scenes? We take a closer look: <h2>First, are <keyword id="4000333" type="General" weightage="100" keywordseo="household-deposits" source="Orion">household deposits</keyword> really slowing down? And is that a cause of concern?</h2>Data from Motilal Oswal suggests the contrary. Deposits grew by around 10.4% between March 2020 and August 2024. Data from RBI also highlights that as of August 9, 2024, bank deposits witnessed a YoY growth of 10.8%. The loan-to-deposit ratio for the retail segment, which indicates what percentage of its total deposits the banks lend out as loans, has stayed at 77.5%, above the 77% mark for the tenth straight month. Also, we can’t forego the fact that the share of Indian <keyword id="20319599" type="General" weightage="20" keywordseo="households" source="keywords">households</keyword> in bank deposits has indeed slowed down. However, data from Axis AMC shows that the dip is marginal—from 63% in 2022 to 62% in 2023 and 61% in 2024. What has slowed down even more considerably is the share of government deposits in the aggregate bank deposits, which has dipped from 14% in 2018 to 9% in 2024. So, it's not just household deposits, you see. Moreover, as of March 2024, the collective CASA ratio (current and savings account deposits) of all commercial banks in India stood at 41.00%, down from 43.1% in March 2023 and 45.2% in March 2022, marking a nearly 5% point decline over the past year, while still staying over the 10-year average of 39.2%. This implies that Indian banks are relying more on higher-cost funds (savings accounts), which can limit their profitability. <h2>What is this financialisation of savings we are talking about?</h2>Then again, there is no doubt about the growing affinity of Indians towards mutual funds and stock markets. Recent data from CBDT (<keyword id="19942037" type="General" weightage="20" keywordseo="central-board-of-direct-taxes" source="keywords">Central Board of Direct Taxes</keyword>) highlights that India’s net direct tax collection surged by around 22%, driven exclusively by the significant uptick in the collection of <keyword id="20930760" type="General" weightage="20" keywordseo="securities-transaction-tax" source="keywords">Securities Transaction Tax</keyword> (STT), which doubled to Rs 26,154 crore, from Rs 13,352 crore in the year-ago period. Why does this matter? STT is levied when you buy or sell equity shares on stock exchanges, sell equity mutual funds, and trade in futures and options in the equity segment. Such taxes, including the multiple other taxes in equity market investments, are considered as leakages as the money moves out of the economy into government coffers. Data from a ValueQuest report explains that over the last 20 years, the markets have handsomely rewarded the investors, generating over $900 billion in incremental value for them. This is the major driver behind the dramatic rise in investment flowing towards the equity markets. There’s further proof of this budding romance, if you check the demat pudding. The number of demat accounts, which are a primary requisite for participating in the stock markets, also burgeoned by 42.3 lakh in August 2024, taking India’s total tally of demat accounts beyond 17 crore. To put this in perspective, this is almost equivalent to the population of just 8 nations in the world, including China, the US, Brazil and more. Vivek Iyer, Partner, Grant Thornton Bharat thinks it's rather important, as well. “Financialisation of household savings in India is an indication of deepening capital markets in the market, especially from a retail investor standpoint. Bank deposits with a modest rate of return are no longer the only option for savings for investors. Investors today have more avenues for wealth creation in the form of public capital markets, which have democratized wealth creation and provided equality of opportunity to retail investors”, he says. Yes, Indians are investing more and more in the markets, and in mutual funds. But is it a sin to look out for inflation-beating returns, which the stock markets offer, and vanilla bank deposits don't? After all, the allure of 12-13% annual returns offered by equities can certainly pale the stability offered by good old deposits, which generally do not go beyond 9% when it comes to annual returns. But all of this is not what is behind the slowdown. India is still a toddler in the school of savings financialization, with less than 10% of the population holding a demat account, and less than 5% of us saving in equities. That's a drop in the ocean of deposits, far inadequate to trigger a tsunami. <h2>Tell me why lagging deposits have nothing to do with Indians investing more in mutual funds!</h2>Says Shweta Rajani, Head - Mutual Funds, Anand Rathi Wealth Limited, “Households' equity holdings composition grew from 11.1% in FY 23 to 14.7% in FY 24. This trend reflects a growing awareness of investment options, empowering individuals to take control of their financial futures. Despite this transition towards equities, banks still hold a significant share of household financial savings—33.5% in FY24 compared to 34.9% in FY23”. Also, household savings and their subsequent financialization do not have much to do with deposit creation, which is entirely made by banks. What actually drives increased deposits is credit growth or increased lending. When interest rates are eased, people tend to borrow more and spend more, which circulates more money in the economy. For the past 4 years, RBI has been tightening the screws on interest rates, which raises the cost of borrowings, and makes it more expensive to take loans, putting a dampener on credit growth, but effectively curbing inflationary pressures. The last time RBI cut the repo rate by 40 basis points was back in May 2020, 4 years ago. The lag in deposit growth we’re witnessing is almost 3 years old. Coincidence much, or just good old economics at work? But with the <keyword id="19900043" type="General" weightage="20" keywordseo="fed" source="keywords">Fed</keyword> recently setting a rate cut precedent by slashing 50 bps off its interest rate, RBI is expected to follow suit in the next <keyword id="19918491" type="General" weightage="20" keywordseo="mpc" source="keywords">MPC</keyword> (Monetary Policy Committee) meeting, scheduled for November 2024. A rate cut would ease the aforementioned high cost of borrowing, and increase loan-taking for corporates and institutional investors, thereby stoking consumption in the economy. And then, deposit creation in banks is likely to return to its former glory. If not, then that would be a curious case to unravel! But that worry is for another day.

A Deposit Dilemma — What's the fuss about a crisis in Indian bank deposits? Are mutual fund investments to blame?

<ul class="summary-list"><li>Palantir stock surged 13% after it was announced that the stock will be added to the S&amp;P 500 index on September 23.</li><li>The defense-focused software company, valued at $75 billion, will replace American Airlines Group.</li></ul><a target="_blank" class="" href="https://markets.businessinsider.com/stocks/pltr-stock">Palantir stock</a> soared as much as 13% on Monday after it was announced that the company will soon be added to the <a target="_blank" class="" href="https://markets.businessinsider.com/index/s&amp;p_500">S&amp;P 500</a> index.With a market valuation of about $75 billion, the software company that counts the US government as its largest customer is replacing <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/aal-stock">American Airlines Group</a>, which has seen its market valuation tumble 22% to just $7 billion over the past year.The changes to the index are set to go into effect on September 23.Palantir stock traded at a new 52-week high, hitting an intra-day peak of $34.13 on Moday.That's the highest level Palantir stock has traded at since February 2021, which ultimately marked the peak for high-growth tech stocks before a painful bear market unfolded in 2022.Palantir's addition to the S&amp;P 500 marks an important milestone for the company as it tries to convince investors of its growth story since going public in September 2020. Importantly, Palantir has <a target="_blank" class="" href="https://www.businessinsider.com/palantir-karp-q1-usa-growth-international-headwinds-europe-israel-support-2024-5">finally flipped on its profit switch.</a>Since its IPO, the company has tripled its trailing 12-month revenue to $2.48 billion, increased its quarterly free cash flow from -$308 million to almost $700 million, and notched four consecutive quarters of positive net income, according to data from YCharts.That last stat is the most important, as consistent profits are a requirement for inclusion into the S&amp;P 500 index.Palantir has convinced Wall Street that its growth can continue as it focuses more on its AI capabilities. Bank of America reiterated the stock as a "Buy" in a note last month."As it was with the gold rush, the real benefactors were the entrepreneurs that supported the rush. This is where we continue to see PLTR's ultimate benefactor - the entrepreneur - the digital axe supplier that is still standing tall now that the AI tourists have started to depart," Bank of America said.The bank added: "PLTR is well-positioned as enriched data, connectivity, and interoperability are what define the new era of defense."Palantir stock is less than 3% away from closing at a new weekly and monthly high.

Palantir soars 13% toward record highs as the stock is set to be added to the S&P 500

<keyword id="21675598" type="General" weightage="20" keywordseo="Indian-wrestler" source="keywords">Indian wrestler</keyword> and <keyword id="20397249" type="General" weightage="20" keywordseo="Olympian" source="keywords">Olympian</keyword> <keyword id="19895499" type="General" weightage="20" keywordseo="Vinesh-Phogat" source="keywords">Vinesh Phogat</keyword> delivered a brilliant start to her <keyword id="20006192" type="General" weightage="20" keywordseo="Paris-Olympics" source="keywords">Paris Olympics</keyword> campaign as she defeated the top seed and the <keyword id="22687883" type="General" weightage="20" keywordseo="Tokyo-2020-champion" source="keywords">Tokyo 2020 champion</keyword> <keyword id="22687412" type="General" weightage="20" keywordseo="Yui-Susaki" source="keywords">Yui Susaki</keyword> of Japan in the women's 50kg freestyle round of 16 match on Tuesday. Susaki was leading 1-0 at the end of the first period, but Vinesh made a brilliant turnaround in the second period, outdoing her Japanese opponent by miles to secure a 3-2 win to make way to QFs. She will be going up against the 2019 European Champion, Ukraine's Oksana Livach in the quarterfinals, as per Olympics.com. Yui is not only the defending champion but also a three-time world champion in the 50 kg freestyle category and the current Asian level champion. Nisha Dahiya's Paris Olympics campaign met an unfortunate end as she succumbed to North Korea's Pak Sol Gum in the quarterfinals of the women's 68 kg competition on Monday. Dahiya faced a 8-10 lost to Sol Gum. At one point, she was leading by 8-2, but she faced an injury and had to take some medical timeouts. Sol Gum took a full advantage of her opponent's injury and made a comeback which was just good enough to help her win the match. In the round of 16, Nisha had defeated Tetiana Sova by 6-4 at the Champs de Mars Arena. Nisha could just make it to the quarterfinals in her debut Olympics. Sova led 4-1 after the first round, but Nisha fought back in the second round to get five more points and turn around the contest in her favour. A total of six Indian wrestlers will be competing at the Paris Olympics from August 5 to 11. Two-time Olympian Vinesh Phogat will be competing in the women's 50 kg category, having featured in 48 kg in the Rio 2016 Olympics and 53 kg in the Tokyo Olympics 2020. Antim Panghal, who had won a Asian Games bronze last year, will be making her debut at the Olympics in the women's 53 kg category. She secured her quota for the Olympics with a World Championships bronze medal last year. Commonwealth Games silver medallist Anshu Malik (women's 57kg), and U-23 world champion Reetika Hooda (women's 76kg) are the other Indian wrestlers who will be competing in the Olympics for the first time ever. Aman Sehrawat will be India's sole representative in men's wrestling, competing in freestyle wrestling. An Asian Games bronze medalist, he will in action during the men's 57 kg freestyle wrestling. India has secured seven wrestling medals at the Olympics: two silver and five bronze medals. SEE ALSO:<a href="https://www.businessinsider.in/stock-market/webstories/unicommerce-esolutions-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112307438.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/webstories/unicommerce-esolutions-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112307438.cms" target="_blank">Unicommerce eSolutions IPO – Price band to risk factors, all you need to know</a><a href="https://www.businessinsider.in/sports/news/neeraj-chopras-paris-olympics-journey-to-begin-with-qualification-round-today-top-rivals-to-look-out-for/articleshow/112311760.cms" target="_blank"></a> <a href="https://www.businessinsider.in/sports/news/neeraj-chopras-paris-olympics-journey-to-begin-with-qualification-round-today-top-rivals-to-look-out-for/articleshow/112311760.cms" target="_blank">Neeraj Chopra’s Paris Olympics journey to begin with qualification round today – top rivals to look out for</a><a href="https://www.businessinsider.in/business/auto/news/electric-two-wheeler-sales-cross-the-1-lakh-mark-after-four-months-ola-electric-leads-the-market/articleshow/112288793.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/news/electric-two-wheeler-sales-cross-the-1-lakh-mark-after-four-months-ola-electric-leads-the-market/articleshow/112288793.cms" target="_blank">Electric two-wheeler sales cross the 1 lakh mark after four months, Ola Electric leads the market</a>

Paris Olympics: Vinesh Phogat secures big win to reach women's 50 kg freestyle QFs

<ul class="summary-list"><li>Klaviyo stock soared on its debut Wednesday, within days of Instacart and Arm's initial public offerings. </li><li>The software company priced 19.2 million shares at $30 each, valuing the company at over $9 billion. </li></ul>Klaviyo stock rallied as much as 23% after it debuted on Wednesday, following <a href="https://markets.businessinsider.com/news/stocks/instacart-stock-price-ipo-cart-trading-grocery-arm-public-offering-2023-9?_gl=1*1g9q118*_ga*MjA5NTAyMzYyOS4xNjYyNDcwMDc5*_ga_E21CV80ZCZ*MTY5NTIzMjk1Ny4xMjkwLjEuMTY5NTIzNDE2OS40My4wLjA.">Instacart's splashy IPO</a> on Tuesday as well as <a href="https://markets.businessinsider.com/news/stocks/arm-ipo-stock-price-chip-designer-trading-nasdaq-tech-stocks-2023-9">Softbank-backed Arm's launch</a> last week.The software company, founded in 2012, priced 19.2 million shares on Tuesday at $30 each, giving Klaviyo about a $9 billion valuation, fully diluted.Shares pared gains and later changed hands at $34.50, about 15% higher from its IPO price. It is listed under the ticker "KVYO" on the New York Stock Exchange.Klaviyo helps companies build user profiles for targeted marketing. It started in the e-commerce sector, and has since expanded into various marketing channels for businesses across events, travel, and entertainment.Revenue grew of 51% in the latest quarter to $164.6 million, helping the bottom line swing to net income of $10.9 million.In 2021, Klaviyo had been valued at about $9.5 billion in private markets. That's slightly less than Instacart, which debuted Tuesday with a $10.2 billion valuation — about a quarter of the $39 billion seen during the pandemic — and Arm's $54.5 billion.Venture capitalists and Wall Street experts are cautiously optimistic about <a href="https://markets.businessinsider.com/news/stocks/arm-ipo-instacart-market-dot-com-bubble-investors-finance-stocks-2023-9">what the recent slate of companies going public could mean for the IPO market</a>, which has been stuck in a pandemic hangover for the better part of two years. In 2020 and 2021, scores of companies initiated IPOs, but many now trade below their IPO price.Wharton senior fellow David Erickson said the current, muted landscape is reminiscent of the years following the dot-com bust. "What we had in 2020 and 2021 was very emblematic of what we saw back then," Erickson told Insider in a recent interview. "There was so much excitement around growth companies, and the market got carried away. After 2000, it took years before IPOs came back, and now we're kind of at that period too." And Rachel Gerring, EY Americas IPO Leader, told Insider on Tuesday that even if the recent names prove successful and well-received by the market, that <a href="https://markets.businessinsider.com/news/stocks/instacart-arm-ipo-stock-market-news-shares-public-trading-valuation-2023-9?_gl=1*1a98x4h*_ga*MjA5NTAyMzYyOS4xNjYyNDcwMDc5*_ga_E21CV80ZCZ*MTY5NTIzMjk1Ny4xMjkwLjEuMTY5NTIzNDE2Ny40NS4wLjA.">doesn't mean the floodgates will open</a> for other companies looking to do the same.Still, she said the likes of Arm, Instacart, and Klaviyo offer a "good litmus test" for what's to come in 2024."These are companies that are largely profitable, scaled, and have name recognition, collectively they are fitting what investors are looking for in this more risk-averse environment," Gerring said. "It's a nice, predictable way for a market reopening to occur."

Klaviyo stock surges 23% as investors cheer the 3rd IPO in a week

<ul class="summary-list"><li>Instacart stock soared 40% above its IPO price on Tuesday when it started trading.</li><li>Before Tuesday, the grocery brand secured a $10.2 billion valuation fully diluted, far below the $39 billion valuation it earned during the pandemic.</li></ul>Investors longing for the days of easy money and double-digit stock pops for newly public companies were treated to a trip down memory lane in the last week — two trips, in fact, as <a href="https://markets.businessinsider.com/news/stocks/instacart-stock-price-ipo-cart-trading-grocery-arm-public-offering-2023-9?_gl=1*1lyfy7i*_ga*MjA5NTAyMzYyOS4xNjYyNDcwMDc5*_ga_E21CV80ZCZ*MTY5NTE0MzE4NC4xMjg0LjEuMTY5NTE0NTg0MS42MC4wLjA.">Instacart</a> on Tuesday surged 40% in its debut just a few days after <a href="https://markets.businessinsider.com/news/stocks/arm-ipo-stock-price-chip-designer-trading-nasdaq-tech-stocks-2023-9">Arm</a> jumped nearly 30% after its own IPO. The successful initial public offerings and big first-day gains flash back to the boom days of the pandemic era, when valuations ballooned to meteoric heights, investors piled cash into unprofitable companies with huge growth prospects, and scores of startups went public. When the Federal Reserve put an end to all that with aggressive rate hikes meant to fight inflation, the IPO market froze, drawing comparisons to <a href="https://markets.businessinsider.com/news/stocks/arm-ipo-instacart-market-dot-com-bubble-investors-finance-stocks-2023-9">the landscape after the dot-com bust</a>. Share prices for companies that had gone public in 2020 and 2021 lost ground. <a href="https://markets.businessinsider.com/news/stocks/recession-odds-easy-money-fed-liz-ann-sonders-charles-schwab-2023-4">Liquidity dried up</a> and valuations cratered. But now Instacart and Arm appear to be initiating the thaw. Experts say venture capital firms, stock market investors, and any private company mulling an IPO will be closely monitoring the how newly-public names trade over the coming months. Whether they can continue trading above their IPO prices will indicate the market's appetite."We're looking at an IPO backlog of more than 200 companies, based on various data sources, and that's the highest it's been in more than two decades," Christian Munafo, the chief investment officer of Private Shares Fund, told Insider on Tuesday. "Many of these companies are waiting to see how the public market reacts to these first movers. But there's a tremendous amount of companies that we think are of high caliber that are just waiting."The companies currently on the sideline, Munafo added, have been shifting their focus from growth to profitability."Even if you're a high-performing company, you're not going to get the valuation multiples you would have gotten 12 or 18 or 24 months ago," he said. "But I do think the public market getting behind companies [like Arm and Instacart] is a signal the market is opening up." <h3>Arm was big, but Instacart is the real test</h3>While Arm isn't characteristic of the typical IPO, given its history on the London Stock Exchange and decades of business, Instacart is a better barometer of market sentiment.Arm secured a valuation of about $54.5 billion, about five times more than Instacart's $10.2 billion. And with the latter's current stage of development, it's a <a href="https://markets.businessinsider.com/news/stocks/arm-ipo-stock-price-tech-stocks-trading-debut-ai-chips-2023-9?_gl=1*1rxhvyz*_ga*MjA5NTAyMzYyOS4xNjYyNDcwMDc5*_ga_E21CV80ZCZ*MTY5NTE0MzE4NC4xMjg0LjEuMTY5NTE0NjQzMy42MC4wLjA.">better proxy for for the broader IPO market</a>, according to Craig Coben, former global head of equity capital markets at Bank of America. "The IPO market is open but it's not indiscriminate," Coben told Insider on Tuesday. "The market is there for companies [looking to go public], but I think it's important for companies to have a track record of profitability before they test investors at this stage."Meanwhile, marketing automation company <a href="https://www.cnbc.com/2023/09/18/klaviyo-raises-ipo-price-range-aiming-for-9-billion-valuation.html" target="_blank" rel="noopener">Klaviyo</a> is targeting a valuation of up to $9 billion in a coming IPO, within range of Instacart's, in what could be another gauge of investor appetite for more public debuts. <h3>Momentum is building, but don't expect IPO tidal wave</h3>Rachel Gerring, EY Americas IPO Leader, said that even if the likes of Arm, Instacart, and Klaviyo outperform, that doesn't guarantee the floodgates open to the same degree they did during the pandemic. While recent IPOs don't exactly fit the typical "micro-cap" size, they are still encouraging as far as momentum and sentiment. "These IPOs are a good litmus test," Gerring told Insider shortly after Instacart began trading Tuesday. "These are companies that are largely profitable, scaled, and have name recognition, collectively they are fitting what investors are looking for in this more risk-averse environment. It's a nice, predictable way for a market reopening to occur."Ultimately, the macroeconomic environment could have more influence on the market than any one company that tests the waters. The backdrop of expensive borrowing costs and the prospect of rates staying higher into 2024 can spook investors and companies. To Gerring, it's not just interest rates, but Fed Chair <a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-federal-reserve-meeting-jerome-powell-hawkish-pause-2023-9">Jerome Powell's words</a> that will determine how next year's market unfolds. "What companies have been struggling with over the last year is the uncertainty of how far the Fed will go, for how long," she said. "That lack of predictability impacts companies, in terms of their ability to forecast. One additional hike may not heavily influence, but it's the tone that comes with it."

The IPO market has been frozen for 2 years. Arm and Instacart point to a thaw coming in 2024.

<ul class="summary-list"><li>Arm stock made its trading debut on Thursday following its IPO that valued the company at $54.5 billion.</li><li>It's the biggest US IPO since 2021, during a pandemic boom that saw massive valuations. </li></ul>Shares of <a href="https://markets.businessinsider.com/news/stocks/arm-shares-start-trading-biggest-ipo-almost-two-years">Arm</a> made their much-anticipated trading debut on Thursday, marking the biggest US initial public offering of the year, and largest since 2021. The stock climbed as much as 21% higher, to $61.66, shortly after trading commenced around noon ET. Shares had been priced at $51, at the top of the expected $47-to-$51 range. The Softbank-backed tech company, which designs most of world's smartphone chips, notched a $54.5 billion valuation after raising about $4.9 billion. Some strategists have pointed to the splashy launch as a potential turning point for the broader IPO market, but others aren't say the blockbuster debut isn't an accurate gauge for the typical company looking to go public. Arm, as well as the impending IPO of Instacart, <a href="https://markets.businessinsider.com/news/stocks/arm-ipo-instacart-market-dot-com-bubble-investors-finance-stocks-2023-9">may not be enough to revive a market that's still trying to shake off a pandemic hangover</a>.Today, the market is indeed open to new issuance but companies have to come to terms with far lower valuations, according to Craig Coben, former global head of equity capital markets at Bank of America. Private valuations were extreme during the pandemic—a period of historically cheap debt and ample liquidity—and now investors and startups have to stomach marking down investments. "When you have a down round via IPO, you may have to compensate people," Coben told Insider. "It creates all sorts of complications on the cap table for companies, your employees, early investors are underwater. Who's going to take it on the chin?"In any case, when a stock debuts on public markets, it's fueled by hype and complicated by technical and exogenous factors, Coben explained. No matter how the shares move, the perceived success or failure of Arm won't be known on its first day of trading. A longer time horizon — "12 months, not 12 minutes," as Coben put it — will determine whether the company earned a fair, accurate valuation. As for whether Arm's deal signals a thawing of the market for new IPOs, Coben says investors are receptive to new listings but it's nothing like the heady days of the pandemic era. "I think the market is extremely open," Coben said. "Investors have risk appetite, but it's not nearly to the same extremes as what we saw during the tech boom of 2020, 2021. Constructive but rational."

SoftBank-backed chipmaker Arm surges 21% in its trading debut after blockbuster $55 billion IPO

<ul class="summary-list"><li>Arm, the British semiconductor firm owned by Softbank, is preparing to go public in September.</li><li>It's on course to be the largest IPO of 2023 – and may become one of the largest in tech stock history. </li></ul>Arm, the chip designer owned by SoftBank, is going public on the Nasdaq in September in what's set to be the biggest initial public offering in the US since 2021.The British company's IPO – which hopes to <a href="https://www.bloomberg.com/news/articles/2023-08-21/softbank-s-arm-files-for-ipo-that-could-be-2023-s-biggest?leadSource=uverify%20wall" target="_blank" rel="noopener">raise up to $10 billion</a> according to some estimates – is set to be the largest US listing since electric carmaker Rivian <a href="https://markets.businessinsider.com/news/stocks/rivian-stock-price-ipo-debut-valuation-100-billion-ford-gm-2021-11">fetched over $12 billion in October 2021</a>. And it could become one of the largest tech-based floats in history – following Alibaba's $25 billion 2014 listing and Meta's (then-Facebook) $16 billion debut in 2012. Though the brand is not well-known by consumers, its technology is present in over 90% of all smartphones. "We estimate that approximately 70 percent of the world's population uses Arm-based products," the company said in its prospectus, seen by <a href="https://www.ft.com/content/36bc706f-66a1-48e3-8c20-ab4966cb0fce" target="_blank" rel="noopener">the Financial Times</a>. But relisting on public markets – having been taken private by tech investor SoftBank in 2016 – puts Arm on track to take advantage of the AI boom in markets this year. The UK-based semiconductor firm, which has a near-monopoly in designing chips for smartphones, is now seeking to expand into the burgeoning field of artificial intelligence, which has supercharged markets this year.Semiconductor giant Nvidia, which has emerged as one of the stock market's biggest winners in 2023 after riding the ChatGPT wave to a $1 trillion-plus valuation, has long sought to acquire a stake in Arm. Though a merger between the two firms fell through in 2020, <a href="https://markets.businessinsider.com/news/stocks/nvidia-stock-ai-arm-anchor-investment-talks-chipmaker-artificial-intelligence-2023-7">Nvidia remains in talks</a> to become an anchor investor in the company as it hits the market early September. A stake in Arm would likely complement Nvidia's competencies as the world's leading chipmaker. The Santa Clara-based firm's stock <a href="https://markets.businessinsider.com/news/stocks/nvidia-stock-still-top-pick-2q-earnings-ai-rally-bofa-2023-8">is the best performer on the S&amp;P 500</a> index this year – its share price has rocketed almost 230% from one year ago.

Chip designer Arm looks to ride the AI boom with the biggest US IPO since 2021

<ul class="summary-list"><li>Instacart debuted on the Nasdaq on Tuesday after pricing its IPO at $30 a share. </li><li>The stock surged 40% when it began trading around 12:50 p.m. ET. </li></ul>Instacart made its stock market debut on Tuesday, jumping as much as 40% in its first trades following <a href="https://markets.businessinsider.com/news/stocks/instacart-ipo-stock-market-debut-nasdaq-cart-arm-public-listing-2023-9">its initial public offering</a> which valued the grocery delivery company at $10.2 billion. The company sold shares to investors at $30 each, completing the second high profile IPO in less than a week on the heels of chip designer Arm's splashy debut last Thursday. Shares of the company soared 40% to $42.06 shortly shortly after the stock began trading around 12:50 p.m. ET. The company completed its IPO at the top end of the expected range, securing a valuation of about $10.2 billion. That's about a quarter of the $39 billion valuation it secured at the height of the pandemic's grocery deliver boom. In the first half of 2023, Instacart saw $242 million of net income from about $1.48 billion in revenue.The company, listed under the ticker "CART," is the second high-profile IPO in less than a week, following <a href="https://markets.businessinsider.com/news/stocks/arm-ipo-stock-price-chip-designer-trading-nasdaq-tech-stocks-2023-9">Arm's launch on Thursday</a>.At a $55 billion valuation, the Softbank-backed chip designer completed the biggest IPO since 2021 as the market for new offerings has been hamstrung by higher interest rates, lower liquidity, and high volatility. Arm stock had surged more than 25% on its first day of trading to about $61 a share, though on Tuesday it declined to $54, closer to its IPO price of $51. The British firm drew a roster of headline cornerstone investors including Samsung, Google, Apple, and Nvidia. Some strategists have pointed to both Instacart and Arm's big debuts as reason to believe the bottom is in for the IPO market and a comeback is on the horizon, though others say neither present a good gauge given their large size and recognizable brands compared to other early-stage companies that might be looking to IPO. David Erickson, a senior fellow at Wharton, pointed out that most of the companies that went public during the last two years have since fallen below their IPO prices, which is <a href="https://markets.businessinsider.com/news/stocks/arm-ipo-instacart-market-dot-com-bubble-investors-finance-stocks-2023-9">similar to what happened in the years following the dot-com bust</a>."What we had in 2020 and 2021 was very emblematic of what we saw back then," Erickson told Insider in a recent interview. "There was so much excitement around growth companies, and the market got carried away. After 2000, it took years before IPOs came back, and now we're kind of at that period too."

You Searched For "ipo 2020" and got 9 results

Do large IPOs guarantee large returns? Data suggests that 18 of India's biggest 30 IPOs did not generate solid returns

Ira Alok Puranik

A Deposit Dilemma — What's the fuss about a crisis in Indian bank deposits? Are mutual fund investments to blame?

Ira Alok Puranik

Palantir soars 13% toward record highs as the stock is set to be added to the S&P 500

Matthew Fox

Paris Olympics: Vinesh Phogat secures big win to reach women's 50 kg freestyle QFs

ANI

Klaviyo stock surges 23% as investors cheer the 3rd IPO in a week

Phil Rosen

The IPO market has been frozen for 2 years. Arm and Instacart point to a thaw coming in 2024.

Phil Rosen

SoftBank-backed chipmaker Arm surges 21% in its trading debut after blockbuster $55 billion IPO

Phil Rosen

Chip designer Arm looks to ride the AI boom with the biggest US IPO since 2021

Joseph Wilkins

Instacart soars 40% in public debut as the 2nd splashy IPO in less than a week tests the market

Phil Rosen

Popular Keywords

Buying Guides