The pandemic risk in IPOs

Covid is mentioned 78 times in the IPO document of FSN E-Commerce Ventures Ltd, which runs online beauty store Nykaa

The ongoing initial public offering (IPO) rush, mostly from the start-up universe, has led to euphoric reports about steep valuations, mega fund-raising and a collection of top investors. But the draft red herring prospectus (DRHP) of most of these stock market-bound firms or those that got listed recently are a commentary on the grave times businesses have gone through during the pandemic. The adverse impact continues directly or indirectly in many cases and could perhaps intensify if Covid-19 cases rise in the coming months, as being seen in some other parts of the world, businesses have said without exception.   

It’s