A total of 15 companies made their debut on the stock exchanges so far in FY19 and of them 10 are trading below their IPO price. The decline in the stock price of these newly-listed firms is in the range of 0.5-53% till November 7.
Dinesh Engineers, passive communication infrastructure provider, withdrew its IPO issue amid sluggish investor response and overall weak market cues on October 3.
ICICI Securities scrip that listed in April is the worst hit with shares plunging as much as 53.20% against the issue price of Rs. 520 per share. The company reduced the IPO size on the backdrop of weak investor response especially from HNIs. Stock of ICICI Securities was last quoting at Rs. 239.9 on the BSE.
Another stock Indostar Capital Finance also plummeted 45.39% from its IPO price of Rs. 572 per share.
Nonetheless, of these newly listed firms, 5 companies managed to give returns of up to 46%. RITES, railways consultancy provider, surged 45.94% in share price from its IPO price of Rs 185.
Shares of Fine Organic Industries, chemical manufacturing company, also gave returns to the tune of 42.91% over its IPO issue price of Rs. 783 per share.
Since August 2018, the broader stock market has witnessed sharp volatility, with Sensex tumbling 3,407.39 points, or 8.81 per cent. In the previous FY that ended on March 31, 2018, 45 companies floated their IPO issue and raised a record capital of Rs. 820 billion.