The first ever move from an Indian e-commerce company to list on the stock exchange is in a “grave” position. Literally! High expectations are the mother of all disasters, which was why the “high-valuation” narrative was rejected by Indian retail investors. So, Infibeam Limited’s Initial Public Offering (IPO) turned in to a disappointment on the first day. It has time till March 23, 2016, to recover and may need the help of its bankers, SBI Capital and Elara Capital, to save the IPO.
“It is a good test for e-commerce companies. They have to re-think their valuations,” says Sanchit Vir Gogia,Chief Futurist, Founder and CEO,Greyhound Knowledge Group. YourStory has raised pertinent points, earlier, on why the Indian stock-market is still a decade away from accepting e-commerce businesses at high valuations and operating on dismal financial fundamentals.