News · via Inc42

Wakefit up 16.69 percent leads new-age tech stocks this week

The signal
  • Of 61 tracked stocks with full-week data, 34 closed positive.
  • Listed comparables are how private rounds get priced.
  • Build a one-page comparables sheet with the three or four listed names closest to your category.

Wakefit led the new-age tech stocks last week. The stock rose 16.69 percent to close at Rs 141.55. Headlines round that to 17 percent, so the precise figure is worth holding on to.

LEAP India rose 11.75 percent to Rs 162.15. Urban Company rose 9.87 percent to Rs 158.60. Shiprocket gained 8.58 percent across its first three trading sessions after listing. Klassroom, Zelio E-Mobility, Turtlemint and Lenskart each touched fresh 52-week highs.

The divergence

Of 61 tracked stocks with full-week data, 34 closed positive. The benchmarks went the other way. The Nifty 50 fell 0.47 percent to 24,252 and the Sensex fell 0.60 percent to 77,540.83. The BSE SmallCap index gained about 1.2 percent. The report describes the split as selective buying in new-age names. No cause beyond that is offered, and none should be added.

The operator read

Listed comparables are how private rounds get priced. When a set of consumer and commerce names reprices upward in public markets, the multiple a founder can argue for in a private round moves with it. That works in both directions, on the way up and on the way back down.

If you plan to raise in the next two quarters, know where your comparables closed and on what date. A term sheet negotiated against stale comparables is a negotiation you have already lost before the meeting starts.

What to do

Build a one-page comparables sheet with the three or four listed names closest to your category. Update it weekly with the closing price and the 52-week range. Keep the rounded version out of it and use exact figures, because the person across the table will be using exact figures too.

Source

Zane’s analysis draws on original reporting by Inc42. Read the original report.

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