According to recent reports, SoftBank Group Corp., a Japanese technology investor, has seen success in the Indian market for share sales, despite its own struggles with disappointing earnings and the realities of the artificial intelligence sector. Three companies backed by SoftBank have recently made strong debuts on the Mumbai stock exchange. Ola Electric Mobility Ltd., a leading e-scooter maker, experienced a 75% surge in its share price, while Unicommerce eSolutions Ltd., a software maker, and Brainbees Solutions Ltd., a baby-products retailer, also saw significant gains in their share value.
The successful IPOs of these companies could provide SoftBank with additional funds for its CEO Masayoshi Son’s ambitious plans to expand its presence in AI and semiconductor technologies. The company has accumulated a substantial cash reserve, and the value of its assets, particularly its chip affiliate Arm Holdings Plc, has increased considerably alongside its stock price.
Alex Clavel, co-chief executive of SoftBank Investment Advisers, indicated that the company may be gearing up for more global IPOs in the future, following the trend seen in India. Despite experiencing losses in its Vision Fund segment, SoftBank is optimistic about the potential of the Indian market, especially after previous setbacks in investments in companies like Paytm and Delhivery Ltd.
While SoftBank’s stock price has recovered slightly in recent days, it remains 30% below its all-time high in July. Investor interest in AI and semiconductor technologies, which have been driving up the shares of companies like Arm, is beginning to show signs of strain.
SoftBank made approximately $155 million through selling shares in the recent Indian offerings, though required lockups means it will take time for the company to realize further gains on its remaining holdings. With a bustling market for IPOs in India, including high-profile listings like Hyundai Motor Co.’s local unit, SoftBank’s portfolio companies, such as Swiggy Ltd. and Oyo Hotels parent company Oravel Stays Ltd., are also preparing for public offerings.
Despite challenges, SoftBank remains confident in its Indian portfolio and is optimistic about the future prospects of its investments in the region.
