The video captioned ‘IPO = Infinite Paisa in Online Object of Issue: Luxury condos in Dahlias & Camellias’ starts with Grover guised as an ‘IPO banker’ with legacy profitable founder and tech founder approaching him for IPOs.
The satirical video shows Grover admonishing the legacy company founder for running a profitable company while favouring the tech founder who proudly boasted that his company generated Rs 100 crore revenue while reported a Rs 700 crore loss albeit too much “tech”. Grover called it “very impressive”.
On the other side of the spectrum was the legacy company founder having a 3-decade old family business. It generated a Rs 1,000 crore topline with profits of Rs 450 crore. Grovers asks the founder to wait saying that he wanted to first speak to the tech founder.
The legacy founder then tells Grover that that the tech founder would not even know the spelling of IPO to which the latter replied “EYEPO”. Grover quips that the latter was “almost there yaar”.
Grover then says that he will help the tech founder in launching a Rs 7,000 crore IPO with company valued at Rs 70,000 crore. The tech founder then asks if it was possible to make that happen. With a P/E multiple of “-100” the company’s chances were bright as the last IPO which he did had a P/E multiple of -200.The legacy company founder then interjects with excitement hoping for a much higher valuation given the track record of the company. Grover then asks him to stand-up and leave mocking him as “profitable founder”.Grover then asks the tech founder to not waste time on the IPO stuff and instead start looking for flats. In the meantime, he will get the IPO work done.
The video had a disclaimer which said — “Disclaimer: No IPOs were unsubscribed during making of this reel. Valuation is a function of your own perspective. Any resemblance to any real IPO is purely coincidental. Read offer document carefully before investing.”.
The viral video shared on Instagram was shared from the handle sharmajikabadabeta (Sanyam Sharma) and the video received 83,044 like, last seen at the time of filing the copy.
Busy IPO week
The video comes ahead of busy weak for the primary markets. On Monday, Lenskart shares will make their market debut. Later in the week, Billionbrains Garage Ventures Limited (Groww) will get listed.
Moreover four new mainboard issues will hit the Street viz. PhysicsWallah IPO, Tenneco Clean Air India IPO, Emmvee Photovoltaic Power IPO and Fujiyama Power Systems IPO. Meanwhile, bidding for Pine Labs will conclude on Tuesday.
In the SME segment, public issues of Workmates Core2Cloud Solution and Mahamaya Lifesciences will be launched. The ongoing issues of Finbud Financial Services, Shining Tools and Curis Lifesciences will also close this week.
Reactions
People followed it up with interesting comments. One said “No Piyush Bansal was hurt here” while the other said that “Lenskart’s PR team searching for damage control glasses “.
While the Street remains divided on profitability and growth potential, the debate has resurfaced with the launch of Lenskart IPO. Many market experts have come out in support of the valuations.
Also Read: Lenskart IPO price sparks concern over Indian startup valuations
Zerodha founder and CEO Nithin Kamath also recently shared a long post on X, voicing his opinion on the issue. He shed light on what he called a “tax arbitrage game” driving startup behaviour and valuations in India, as he explained why many venture capital (VC)-backed companies are deliberately operating with little or no profit.
Read more: IPO investor alert: Zerodha CEO Nithin Kamath flags how tax arbitrage game by VC firms is driving valuations
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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