Not since the economic liberalisation began have IPOs attracted so much attention as storied startups finally take the stock market plunge.
Two IPOs in particular have been in the news: the e-commerce beauty giant Nykaa and the original fintech player Paytm.
How has the sentiment been around these two? Current research by Wizikey, decodes the IPO journey for these two unicorns in the last six months for PRmoment.
IPO and stock sentiment Positivity for Nykaa more positive than for Paytm
Interestingly, Nykaa maintained a 100 percent positive sentiment from May to October 2021 In the month of November 2021, has a slight dip and stood at 99.4%.
Sentiment on Nykaa’s stock
But it recovered in November, in fact Nykaa stock had 100 % positive sentiment.
In contrast, as Paytm stock slipped on listing ( last week) as compared to its issue price, the sentiment dipped too.
This gave further impetus to what some IPO watchers have been saying for a while, that the startup tech IPO is a bubble waiting to burst.
IPO Sentiment positivity
In the month of May 2021, Paytm maintained a sentiment of 99.2%, in June it had 99.0%, in July it was 99.4%, in August it stood at 93.9%. Again in September 2021 it recovered and was 99.1% and in October 2021 the sentiment remained at 99.5%, but it further dropped in the month of November 2021 and stood at 39.6%.
Sentiment on Paytm’s stock
Paytm’s stock had a negative sentiment of 39.6 % and positive sentiment of 60.4% in November 2021
News Volume for Nykaa
Over the last six months, the company generated 4700 mentions across 200+ publications. 24% of the articles covered Nykaa in the headline.
Leadership share of news
Founder Falguni Nayar was mentioned in 26% of the total news volume.
Of the total news related to Nykaa, 74.9% news share was dominated by the IPO.
The beauty brand had 12.8% customer-related news, technology narratives at 5.9%, employers and people at 5.4%, and industry and partners at 1.0%.
News Volume for Paytm
Paytm garnered 12,000 media mentions across 300+ publications. Paytm dominated the news headlines in 75% of articles.
Leadership Share of News
Paytm’s founder Vijay Shekhar Sharma led the leadership voice share with 73%.
Of the total news garnered by Paytm, when it came to narratives related to IPO, it registered a 58.2 % news share.
In customer stories, the brand stood at 22.7%, technology narratives at 12.9 %, employers and people at 5.2 %, and industry and partner at 1.0 %
News Peak week
When Paytm announced its IPO in the 3rd week of July 2021, it gathered 182 newsclips.
During the subscription week, Paytm registered 423 news clips.
Finally, on the day Paytm opened for trading, it garnered 100 news clips on that day.
1) Both Nykaa and Paytm started off with very high positive sentiment for the IPOs easily crossing the 90% mark.
2) Sentiment around Nykaa on the stock itself was far more positive than that for Paytm.
3) Paytm outperformed Nykaa in terms of sheer volume of news, but sentiment as lower.
4) Top 3 narratives were similar for both firms, its was investor/IPO, customers and technology. Though being fintech, Paytm has greater volume of narratives around tech than Nykaa.
Wizikey analyzed the sentiment using AI and ML. It is based on the tonality of words used against each brand and then an aggregated score based on those individual scores.