The stock market has witnessed quite a lot of shifts and changes in the past couple of months since the recent IPO listings. More than half of them are trading now below their projected prices, which indicates that chasing long-term capital like primary offers hasn’t been put to very good use. Approximately 13% of these IPOs since the beginning of December 2017, many investors have experienced losses that go up to a whopping 30%.
Nykaa and Paytm which seemed to be the most promising organizations recently also fell by a massive number of late. Let’s analyze how they have done so far!
What happened to Nykaa’s Share Price?
FSN E-Commerce Ventures Ltd, the company that owns beauty e-retailer Nykaa recently mentioned that the Nykaa Share Price has been under a lot of pressure since the past week. The shares fell to 4% which became a massive loss for the organization. As per NSE Data, Lighthouse India Fund Limited has sold approximately 96,89,240 shares at a price of ₹171 for every share. The other major sellers like SegantII India Mauritius have sold approximately 33,73,243 shares. The average price has gone up to ₹199 as per 15th November.
What happened to Paytm’s Share Price?
Paytm’s parent firm One97 communications declined approximately 2 percent of morning trade after SoftBank also diversified 4.5% of its stake in firms for approximately Rs 1,631 crore using open market transactions. The stocks have dipped by a massive 2.23% to Rs 527.50. The firm has faced volatile trends in this trade and it also later recovered approximately 0.79% much higher than Rs 543.80 on BSE. Earlier during this month, the lock-in period had ended after the investors who had invested were cited on bonuses last year in November. In other words, Paytm’s share price has fallen by 2%, exactly one day after crashing at over 10%.
What has happened to other companies?
ICICI Securities, which initially had a listing of approximately 14% has been reduced to 29% with its issue price reduced to 520 rupees. Defense manufacturers Hindustan Aeronautics have also suffered a loss of approximately 7%, bringing things down to 10%. Investors who have bought shares by state-running defense equipments at 428 have also seen stocks reduce to Rs 390. IPO investors in health care also provide Aster DM which has reduced to 9% losses.
Well, it is quite evident that valuations have become quite tight. A couple of years ago, it would be hard to find the right value. Initially, when markets began showing interest, bankers and promoters began to issue prices that are high. In order to justify, there were two earnings a couple of years ahead. Interest was also building up from domestic institutions and FIIs. Then people were losing money on IPOs. The whole thing has hence turned upside down and with people going back on IPO plans & lowering the target by a whopping 20%.