Zeptos $1 Billion IPO Plans May Be in Trouble
Zepto, a Indian e-commerce startup valued at nearly $9 billion, may be reconsidering the size of its highly anticipated public issue due to pressure from domestic investors. The company’s parent, Glance, was previously in talks to raise around $1 billion through an initial public offering (IPO).
The sudden change of plans marks a significant shift in Zepto’s strategy, as it had already filed its draft red herring prospectus (DRHP) with market regulator SEBI, a crucial step towards launching a public issue. The company had set a price band of ₹1,160-₹1,161 per share, with an aim of raising up to ₹4,400 crore (around $550 million) at the lower end of the band.
What this means: Zepto’s decision to re-evaluate its IPO plans may signal a cooling off of investor interest in the Indian digital economy, at least for now.
Tata’s Bet on Legacy Chips
Meanwhile, Tata Group, the Indian conglomerate, is planning to invest in a new semiconductor manufacturing facility. This move marks a significant bet on legacy chip technology, a sector that has seen a surge in investments globally.
The company’s semiconductor unit, Tata Electronic Components, is planning to partner with the Taiwanese chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC), to set up a 65nm (nanometer) fabrication facility in the Indian state of Gujarat. The 65nm technology is considered outdated in today’s world, but the investment highlights Tata’s focus on serving the needs of a broad set of customers, including those in the electronics and automotive sectors.
What this means: Tata’s decision to invest in legacy chip technology suggests that the company is targeting a different segment of the semiconductor market, one that may not be as focused on cutting-edge designs.
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