India has been witnessing a great run in the equities market for the past 1.5 years, with Sensex touching over 60k and Nifty crossing 18k on several trading sessions. With such a positive enthusiasm in the bull market, companies are not leaving any chance to make a debut in the market.
Just in 2021, Dalal Street has seen around 46 IPOs, with Paytm, having an issue size of Rs 18,300 crore, triumphing over Coal India become India's biggest IPO in over a decade.
However, the digital fintech firm disappointed the investors on Thursday after it made a weak market debut with stock crashing 20 per cent.
The stock opened at Rs 1,950 on the National Stock Exchange and the listing price on the Bombay Stock Exchange was Rs 1,955, against the issue price of Rs 2,150.
Paytm is not alone in the list, many such biggest IPOs in the last 10 years have let down the investors. Check the list below:
Company Name |
List Date
Issue Price (Rs)
List Price (Rs)
Change post listing (%)
Coal India
4 November 2010
245
288
-40.3
Yes Bank
27 July, 2020
12
12
6.5
GIC Re
25 October, 2017
912
425
-67.1
SBI Cards
16 March, 2020
755
658
67.7
New India Assurance
13 November, 2017
800
375
-57.9
Reliance Power Limited
11 February, 2008
450
372.50 (by the end of trading hours then)
-
ICICI Prudential
29 December, 2016
334
329
99.2
ICICI Lombard
27 September, 2017
661
650
132.4
These figures indicate that market sentiments can move in any direction irrespective of the fact that whether it is a large-cap company IPO or a small-cap. According to the Economic Times data, 100 out of 164 IPOs since 2008 are trading below their issue price. Of the remaining stocks that have given positive returns, only 44 companies have given double-digit returns. The benchmark Sensex, on the other hand, has doubled during this period.
Meanwhile, many analysts feel that some IPOs fail because they may have been priced aggressively, though the share performance also depends on various other parameters including industry outlook, quality of business and management.
