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The Economic Times
The Economic Times
Nikhil Patwardhan and Ayanti Bera

Young, loss-making startups keep OFS portion lean as investor scrutiny grows

Young, loss-making startups preparing for initial public offerings (IPOs) are increasingly keeping the fresh issue component large to fund their growth plans as investors grow wary of large shareholder exits from companies that still require capital to scale and turn profitable, according to experts.

Quick commerce platform Zepto’s proposed Rs 8,010-crore fresh issue is the latest example of this. It follows similar moves by Ola Electric and PhysicsWallah , whose offer for sale (OFS) portions were about 10-11% of their IPOs.

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