Zepto Shares Plunge 30% in Unlisted Market Despite Sebi Approval for IPO – What’s Behind the Drop?

Zepto Limited’s unlisted shares have experienced a significant decline of nearly 30% over the past month, dropping from approximately Rs 52 to Rs 40. This downturn comes despite the company’s recent receipt of regulatory approval for its Initial Public Offering (IPO). The dip has raised concerns among investors, reflecting a broader caution amid volatile market conditions and an overall reassessment of company valuations rather than any specific deficiencies within Zepto itself. Currently, the company holds a dealer market valuation of around Rs 38,000 crore amidst a challenging environment for startups, where many have opted for delays in their public offerings due to heightened volatility and geopolitical tensions.

The current state of the Indian equity market has influenced investor sentiment, particularly among foreign institutional investors who remain wary of the domestic market. The benchmark Nifty index has faced pressures, further exacerbated by uncertainties surrounding global growth and crude oil prices. This context has led to a more cautious approach among investors, affecting several startups, including Zepto, as the secondary market for pre-IPO shares has weakened significantly. Given the robust competition in the quick commerce sector, which includes players like Blinkit and Swiggy Instamart, investors are now adopting a more selective perspective on valuations after a remarkable rally in this segment over the past two years.

Zepto is preparing for a public market debut anticipated to raise approximately $1.3 billion (Rs 11,000-12,000 crore), positioning it as one of the largest IPOs in the internet domain since Swiggy’s listing. The IPO will consist of a considerable fresh issue alongside an offer-for-sale component from existing investors. While Zepto initiated aggressive customer acquisition strategies following its substantial $450 million fundraising last October, it’s also noteworthy that the company’s cash reserves of Rs 7,000 crore are considerably lower than those of its publicly listed rivals. Given the aggressive spending patterns within the fast-growing quick commerce industry, the upcoming IPO is viewed as crucial for strengthening Zepto’s balance sheet.

As the company transitions from Singapore to India in anticipation of its domestic listing, it has engaged a consortium of prominent investment bankers to facilitate the IPO process. The offering is expected to be released between July and September 2026, and while the recent share price decline signals a cautious market response, Zepto’s eventual public offering will undoubtedly attract considerable attention. Investors will remain focused on the final valuation and overall market conditions as the IPO date approaches, making it one of the year’s most anticipated public offerings.

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(Expert Note: This report was prepared by the Wealthova team.)