Thanks again for explaining so beautifully. Last thought that comes to mind for now regarding this is…Nykaa is also largely a Promoter owned company – before as well as after IPO…unlike many other New age companies…and also there are many traditional business which get listed with much much less Promoter stake as compared to Nykaa…but they do not witness the fall Nykaa is witnessing near lockin period…makes me think what should be root cause –
- IPO Pricing/Narrative and/or
- Lack of Profitability/doubt on business model and/or
- Promoter Ownership – kind of gets ruled out in case of Nykaa…infact its much better than many traditional businesses and/or
- Type of Investors involved – I think this may also have some weight on current situation as Angel/PE/Venture investors are more in New age businesses as compared to traditional. So type of investor is very important during lock in.
Elaborating point 4, I see that in case of Nykaa, unlike other new age firms, at least they do not have a single large PE…they seem to have healthy mix. Also, some well known individuals are also invested as top investors…Now is that a good thing or bad, I do not know…
views welcome!
Disc: Same as above
| Subscribe To Our Free Newsletter |
