The IPO listing train that the Indian markets saw in 2021 has fizzled out of its steam. 10 out of the 11 recently listed IPOs are trading at prices lower than their listing price, just months after their launch according to a report by Economic Times.
Apart from auto components supplier Divgi Torq Transfer Systems, which is up by 6% from its listing price of Rs 605.20, all the remaining 10 IPOs are trading at a discount range of 2% - 40% from their respective listing prices. The other recent IPOs were listed by Radiant Cash Management Services, KFin Technologies, Landmark Cars, Elin Electronics, Abans Holdings, Sula Vineyards, Uniparts India, Dharmaraj Crop Guards, Keystone Realtors and Inox Green Energy.
The biggest loser of the pack is Elin Electronics which lost 40% from its listing price, followed by Inox Green Energy Services losing 36%, Dharmaraj Crop Guard losing 35%, KFin Technologies lost 26%, Abans Holding lost 22%, Keystone Realtors lost 16%, Uniparts India lost 12%, Sula Vineyards lost 7%, Landmark Cars lost 4%, and Radiant Cash Management Services lost 2%, all from its respective listing prices.
While the companies are in the red currently, 6 out of the 11 companies had listed with a premium, 1 company listed near its issue price and the remaining 4 listed at a discount on the Indian stock markets.
India’s benchmark Index, Nifty is down -5.75% in the year-to-date period. The correction in the values is attributed to the higher prices in the market and dampening investor sentiment in the market. The recent months have been volatile for the Indian markets with continuous rate hikes, Adani Group correction and the recent collapse in the global banking world.
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