IPO: Will Zomato and Paytm compete with HDFC Bank or TCS? Know what the expert said

New Delhi. Due to the good market sentiment, many small and big companies are turning to the IPO market to raise funds. Due to which there has been a lot of IPO in the market this year. Meanwhile, the IPOs of Zomato and Paytm are also in the news. Even though there is tremendous enthusiasm in the market regarding the IPO of tech startup companies like Zomato and Paytm, but Shankar Sharma has a different opinion. Let us know what the experts have to say about it…

How will the performance be after listing?
Shankar Sharma, Vice Chairman and Co-Founder of First Global, said that to become a company like HDFC Bank and TCS, good management is needed for years. Such a company cannot be created just by spending money. In a conversation with Moneycontrol’s Kshitij Anand, Shankar Sharma said that there is excessive enthusiasm about the IPO of these companies. After listing, the performance of these companies will not be special.

Also read: PB Fintech IPO: Preparing to raise Rs 6500 crore from IPO, PB Fintech is the parent company of Policybazaar

Will investors benefit?
Shankar Sharma said that by investing through IPO, you can make profits immediately after listing. At a time when money is the only thing in the secondary market, this is the right time to bring big IPOs. This is also true in the case of Zomato. Sharma said, “I think it is right for them to raise money through IPO. Of course this is the right time. But is it also the right time for investors? That is a different question. Which is right for the company. Not necessarily good for investors either.

Told Zomato the loss making company

When you look at stocks like Zomato, it is a loss making company. The Indian market is very strict about profits. There has not been a very good history in the market that the shares of companies running in loss have gone up a lot. Burger King is a good example of this. The company is running in loss and the result is that its shares are not able to give good returns.

(Disclaimer: Market Investments are subject to market risk. Investors should consult experts before investing. News18.com does not advise anyone to invest.)

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