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@article{203119,
        author = {Aarti and Dr. vineet singh and Dr. Divya pathak and Dr. Shika makkar},
        title = {“Determinants of Ipo success and failure:A comparative study of Zomato and Paytm”},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {12},
        pages = {9394-9403},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=203119},
        abstract = {Through an IPO, a private company becomes publicly listed and raises funds from investors in the capital market. In India, the IPO market experienced rapid growth after the COVID-19 pandemic, especially in the technology, fintech, and digital start-up sectors. However, the performance of IPOs has not been uniform. Some IPOs generated strong investor confidence and delivered impressive listing gains, while others failed because of overvaluation, weak profitability, poor investor sentiment, and unsustainable business models.
This research paper examines the determinants of IPO success and failure through a comparative study of Zomato and Paytm. Both companies launched their IPOs in 2021 and attracted massive public attention due to their strong market presence and digital business models. Despite operating in the same start up ecosystem and launching IPOs during a favourable market environment, the outcomes of the two IPOs were significantly different.
The study uses secondary data collected from research papers, IPO prospectuses, company reports, NSE/BSE data, journals, and published market reports. The analysis focuses on investor sentiment, valuation strategy, subscription rates, listing performance, financial condition, profitability outlook, and market response.
The findings reveal that IPO success depends upon multiple interconnected factors such as strong brand value, realistic valuation, positive investor sentiment, subscription level, growth expectations, and market confidence. Zomato’s IPO was considered comparatively successful because investors believed in its long-term growth potential and digital economy expansion. On the other hand, Paytm’s IPO faced criticism due to aggressive pricing, heavy losses, weak profitability expectations, and negative investor sentiment.
The study concludes that investor psychology and behavioural finance play a crucial role in IPO markets. IPOs launched during periods of excessive optimism may initially attract attention, but sustainable long-term performance depends on financial stability, transparent valuation, and strong business fundamentals},
        keywords = {Initial Public Offering (IPO)  •IPO Success and Failure  •Zomato IPO  •Paytm IPO  •Valuation Techniques  •Discounted Cash Flow (DCF)  •Relative Valuation  •Pricing Strategy  •Investor Sentiment  •Fear of Missing Out (FOMO)  •Corporate Governance  •SEBI Regulations  •Fintech Industry  •Market Performance  •Investor Confidence},
        month = {May},
        }