New Age IPOs Struggle to Sustain Profitability Post-Debut

Recently, many new companies have started selling shares to the public for the first time, called an IPO.

Companies like Lenskart and PhysicsWallah became profitable just before or after their IPO.

However, most of these companies struggle to keep making profits afterward.

Experts say this happens because these companies might use special accounting methods to look profitable on paper before the IPO.

After becoming public, they face more rules and costs, which can make it harder to stay profitable.

Investors are advised to look beyond just the headline numbers and see if the company can keep growing without the IPO hype.