Snapdeal panicked after seeing the condition of Facebook and Paytm, took a big decision

Shares of the world’s top tech companies are currently on the decline. If we look at Tesla and Facebook since the beginning of 2022, both their shares have fallen by more than 50%. At the same time, the stock of India’s tech company Paytm and Zomato has been continuously falling since its listing. Frightened by this, the e-commerce company Snapdeal has taken a big decision.

Worried about the bad condition of tech companies, Snapdeal decided to withdraw its IPO

Image Credit source: Reuters

The period of decline in the stock market continues. While tech companies at the global level (Tech Companies Shares Market Down) Very bad condition. Facebook, Google, Amazon whether or not of India Paytm either ZomatoShares of tech companies are continuously sinking. This scared the e-commerce company snap deal Has also taken a big decision. Know what is the condition of the shares of tech companies…

Snapdeal, which competes with Amazon and Walmart-owned Flipkart in India, filed a prospectus with SEBI in December last year to launch an IPO. Now the company has opted out of it and has applied to SEBI for its withdrawal. i.e. now Snapdeal IPO Not going to come at the moment. The company had set a target of raising around Rs 1,250 crore from this IPO.

Snapdeal panics after seeing the condition of tech companies

A source with knowledge of the matter told Reuters, ‘There is no scope for the stock of tech companies in the market right now. Considering the market conditions, the company has withdrawn it for the time being. It is possible that considering the capital requirements and market conditions in future, IPO should be considered again.

Facebook, Google, Amazon all in trouble

Snapdeal’s point also seems correct that the market is not yet capable of digesting the shares of tech companies. If we look at the figures from the beginning of 2022 till now Tesla share price About 57% is broken. Whereas Amazon’s share price (Amazon Share Price) During this, 47 percent has fallen. While Google’s share price (Google Share Price) 35 percent in and Facebook’s share price (Facebook Share Price) There has been a decline of 66 percent.

Fear of Paytm, Zomato’s IPO

It is not just about international tech companies. The shares of Paytm and Zomato, the tech company listed loudly in the Indian stock market, have been falling continuously since the IPO. From the beginning of the year 2022 till now Paytm share price More than 59 percent has fallen. There itself zomato share price is also running with a decline of 54.5 percent.

boAT, PharmEasy cancel IPO

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However, Snapdeal is not the first company to pull out of an IPO. Earlier, online pharmacy company ‘PharmEasy’ also canceled its IPO plan. While Boat Lifestyle, a company that manufactures earphones and smartwatches, has also shied away from bringing an IPO.