It was a mixed week for new-age tech stocks, with 23 of the 57 stocks gaining in a range of 0.01% to about 15% and 34 stocks declining between 0.15% to 11.75%
Shares of Amagi, Aequs, Nykaa, Kissht, Shadowfax and SEDEMAC touched fresh highs during the week, while none of the new-age tech stocks recorded fresh lows
The cumulative market capitalisation of the 57 new-age tech companies rose to $135.92 Bn at the end of the week from $134.52 Bn a week ago
It was a mixed week for new-age tech stocks, with 23 of the 57 stocks gaining in a range of 0.01% to about 15% and 34 stocks declining between 0.15% to 11.75%.
After an extended period of bearish sentiment, NSE SME-listed Yudiz jumped 14.46% to end the week at ₹28.10. Meesho and Smartworks followed, gaining 7.37% and 5.65%, respectively.
Shares of Amagi, Aequs, Nykaa, Kissht, Shadowfax and SEDEMAC touched fresh highs during the week, while none of the new-age tech stocks recorded fresh lows.
However, profit booking sentiment was seen in a number of stocks during the holiday-shortened week.
After touching fresh highs, Nykaa, Kissht, Shadowfax and SEDEMAC ended the week in the red.
The list of losers this week was topped by ideaForge, with its shares falling 11.75% to end at ₹822.35.
Overall, the cumulative market capitalisation of the 57 new-age tech companies rose to $135.92 Bn at the end of the week from $134.52 Bn a week ago.
Now, let’s take a look at some of the key developments at the new-age tech companies this week.
Key Updates Of The Week
- Block Deals Galore: The week saw multiple block deals, as early investors booked profits. While Alpha Wave Ventures and Nexus Venture Partners sold stakes in Delhivery, Actis and Sofina Ventures made partial exits from Pine Labs and Honasa Consumer, respectively.
- Turtlemint IPO Sails Through: The insurtech company’s public issue closed on Tuesday (June 23) with an oversubscription of 1.2X. The company’s shares are scheduled to list on the bourses on Monday (June 29).
- Aye Finance Raises ₹140 Cr: The listed NBFC raised ₹140 Cr by issuing 14,000 NCDs with a face value of ₹1 Lakh each to Nederlandse Financierings-Maatschappij voor Entwikkelingslanden NV (FMO).
- Go Digit’s Tax Problems: The insurance major has now received a show cause notice (SCN) from Bengaluru GST Authority. The SCN alleges ineligible availment of input tax credit amounting to ₹20.51 Cr during the period between September 2022 and March 2024.
- Ola Electric Gets Key Certification: The EV major’s subsidiary Ola Cell Technologies received a certification from the Bureau of Indian Standards (BIS) for its indigenously developed LFP 46100 cylindrical cell.
- Meesho’s CHRO Quits: The ecommerce giant’s chief HR officer Ashish Kumar Singh quit after a near six-year stint with the company.
- Zappfresh To Grant Loans: The meat delivery company is seeking its shareholders’ nod to grant loans, guarantees and/or securities up to an aggregate limit of ₹100 Cr.
- Honasa Forays Into Nutraceuticals Market: The BPC major expanded into the nutraceuticals segment with the acquisition of a majority stake in Fluence Pharma for ₹135 Cr from its existing shareholders. The secondary transaction is expected to close within eight weeks.
Now, let’s take a look at the performance of the broader market this week.
Investor Sentiment Turns Positive On West Asia Peace
The Indian equity market ended the week on a positive note, with benchmark indices extending their gains despite bouts of volatility. The Sensex rose 0.39% during the week to end at 77,100.47, while Nifty 50 gained 0.18% to settle at 24,056.
Among other indices, Nifty Midcap declined about 1.15% as investors booked profits after a strong rally, while the smallcap index ended the week largely flat.
Notably, stock exchanges were closed yesterday due to Muharram.
The biggest tailwind for domestic equities was the sharp correction in crude oil prices, as tensions in West Asia eased and shipping through the Strait of Hormuz normalised.
Lower oil prices eased concerns over imported inflation, India’s current account deficit, and corporate cost pressures.
Sentiment also benefited from optimism around a possible India-US trade agreement and a potential resumption of selective buying by FIIs. However, softer domestic macroeconomic data, including weaker core sector growth and moderating PMI readings, suggested that economic activity lost some momentum during June, tempering gains.
Investors will closely monitor progress in trade negotiations, movements in crude oil prices, and FII flows for directional cues next week. Market participants will also track upcoming domestic macroeconomic data and global economic indicators, particularly from the US, for signals on interest rate expectations. With the Nifty back above 24,000, the market’s ability to sustain these levels will remain the key focus.
With that, let’s take a detailed look at the performance of Smartworks and Swiggy this week.
Smartworks’ Aggressive Singapore Expansion
Coworking space provider Smartworks announced strengthening its Singapore presence this week. Investors cheered the expansion plans, with the stock gaining 5.65% to end the week at ₹489.2.
During the week, the company’s board approved the acquisition of Singapore-based flex workspace startup WorkStudio through its wholly owned subsidiary. This came barely two weeks after Smartworks announced its third managed office in the country’s Central Business District.
While the financial terms of the acquisition remain undisclosed, the deal will expand Smartworks’ Singapore portfolio to four centresspanning about 76,000 sq ft from over 50,000 sq ft currently.
The rapid overseas expansion complements Smartworks’ aggressive domestic growth strategy. Over the past few weeks, the company leased 400 seats to a Japanese NBFC subsidiary in Mumbai under a five-year contract expected to generate ₹35 Cr in revenue and expanded its Bengaluru footprint with a 4.92 Lakh sq ft managed campus.
Smartworks now operates 66 centres spread across 16.1 Mn sq ft of space in India and Singapore, serving more than 770 enterprise clients.
Swiggy’s Quick Commerce Puzzle
Swiggy’s shares came under significant pressure this week amid intense competition in the quick commerce segment and top-deck exits. The stock plunged 5.31% to end the week at ₹240.70.
During the week, Flipkart said it is looking to expand the number of centres of its quick commerce arm, Flipkart Minutes, to 1,500 across 180 cities. The company claimed its volume has grown over five-fold since the network expansion began.
On the same day, Amazon also announced plans to expand the fulfilment network of its quick commerce arm Amazon Now to 300 cities, up from 100 cities it was targeting earlier this year. The company has earmarked ₹2,800 Cr to strengthen its quick commerce arm.
The announcements soured investment sentiment for Swiggy as the two ecommerce giants are now aggressively looking to gain market share from incumbents Eternal-owned Blinkit, Swiggy’s Instamart and IPO-bound Zepto.
Of the three companies, only Blinkit is profitable currently.
Meanwhile Swiggy Instamart also saw two senior leadership exits. Its COO Ankit Jain and CBO Hari Kumar stepped down from their roles.
The exits came at a time Swiggy is looking to become an Indian-owned and controlled company (IOCC), a key step required for moving Instamart towards an inventory-led model.
The move would allow Instamart to own and procure inventory directly instead of operating as a marketplace. Shareholders rejected a special resolution that would have enabled its transition to IOCC last month, and Swiggy has been holding talks with its shareholders before floating the resolution again.
Edited by Vinaykumar Rai
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