A quick analysis by ETMarkets.com shows that out of 41 IPOs with an issue size of over Rs 1,000 crore or more that have flocked to primary markets to raise funds, more than half are trading below listing price and 18 below issue prices.
Of those 41 issues, some 12 IPOs have left a gaping hole in investors’ pockets as they are down 50-65% from their record highs, suggesting the path to recovery from past highs could prove long and difficult in the context of the current market turmoil. .
Topping the list of losers are known loss-making new-age tech stocks.
at the forefront recorded a fall of more than 67% from the high of Rs 1,470, data available from ACE Equity shows.
Next, closely followed by Paytm’s parent
which is down 66.5% from an all-time high of Rs 1,961.05. Interestingly, the stock never crossed the issue price and IPO investors are sitting with losses of 69%. The average broker target for suggests an upside of 95% from current levels and for PB Fitech of 46%.
CarTrade Tech and Fino Payments Bank lost 65.8%, 61.3% and 60% respectively.
Most of these companies are a story of good listings but later could not give anything to investors, said Kranthi Bathini of Wealth Mills Securities.
“Primarily, in most of these IPOs, what was left for investors was very less. the market situation. that, following the results and the outlook, the euphoria has died down,” added Bathini.
MedPlus Health, , Lifesciences and are the seven other names trading with deep cuts of over 50% each.
Commenting on the outlook for the IPO market, VK Vijayakumar, Chief Investment Strategist at
told ETMarkets.com that the market situation is not favorable for large IPOs and that space has been mixed.
“Correctly priced IPOs that leave something on the table for investors have worked well and are trading at a good premium to issue prices. Highly priced IPOs are unlikely to get a good market response,” he added.
As global macro factors – rising interest rates, reduced QE from the Fed and ECB, and the situation in Europe due to the war in Ukraine – have affected the liquidity situation, investors are keen to look at companies with a good path to profitability rather than just focusing on growing new technology companies because most of their stocks have failed to yield any returns, said Amishi Kapadia, executive director and global head – Merchant Banking, YES Securities.
The high OFS component in many IPOs, with existing holders exiting loss-making companies, fails to instill confidence in public market investors, she added.
(Data entry: Ritesh Presswala, etmarkets.com)
Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times.
A quick analysis by ETMarkets.com shows that out of 41 IPOs with an issue size of over Rs 1,000 crore or more that have flocked to primary markets to raise funds, more than half are trading below listing price and 18 below issue prices.
Of those 41 issues, some 12 IPOs have left a gaping hole in investors’ pockets as they are down 50-65% from their record highs, suggesting the path to recovery from past highs could prove long and difficult in the context of the current market turmoil. .
Topping the list of losers are known loss-making new-age tech stocks.
at the forefront recorded a fall of more than 67% from the high of Rs 1,470, data available from ACE Equity shows.
Next, closely followed by Paytm’s parent
which is down 66.5% from an all-time high of Rs 1,961.05. Interestingly, the stock never crossed the issue price and IPO investors are sitting with losses of 69%. The average broker target for suggests an upside of 95% from current levels and for PB Fitech of 46%.
CarTrade Tech and Fino Payments Bank lost 65.8%, 61.3% and 60% respectively.
Most of these companies are a story of good listings but later could not give anything to investors, said Kranthi Bathini of Wealth Mills Securities.
“Primarily, in most of these IPOs, what was left for investors was very less. the market situation. that, following the results and the outlook, the euphoria has died down,” added Bathini.
MedPlus Health, , Lifesciences and are the seven other names trading with deep cuts of over 50% each.
Commenting on the outlook for the IPO market, VK Vijayakumar, Chief Investment Strategist at
told ETMarkets.com that the market situation is not favorable for large IPOs and that space has been mixed.
“Correctly priced IPOs that leave something on the table for investors have worked well and are trading at a good premium to issue prices. Highly priced IPOs are unlikely to get a good market response,” he added.
As global macro factors – rising interest rates, reduced QE from the Fed and ECB, and the situation in Europe due to the war in Ukraine – have affected the liquidity situation, investors are keen to look at companies with a good path to profitability rather than just focusing on growing new technology companies because most of their stocks have failed to yield any returns, said Amishi Kapadia, executive director and global head – Merchant Banking, YES Securities.
The high OFS component in many IPOs, with existing holders exiting loss-making companies, fails to instill confidence in public market investors, she added.
(Data entry: Ritesh Presswala, etmarkets.com)
Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times.