IPO market also referred to as the primary market currently has come to a standstill as the recent carnage on the D-street due to global worries led many companies to defer their plans. Now, even as IPOs tend to attract huge investor money, not all give handsome returns. Likewise, some of the IPOs of 2022 have emerged as big wealth destroyers, here we discuss the same. Note, the BSE IPO index that covers recent IPOs as its constituent has dived by a sharp over 28% YTD
IPO issue by the largest public insurer turned out to be the country's largest ever public issue (Issue size-Rs. 21,000 crore). In new business premium, the company has a market share of over 66%. But when it comes to its IPO, the issue has eroded investors' wealth substantially since its listing in May. As against the issue price of Rs. 949, the stock listed at a discount of close to 8% at Rs. 867.2. Now going by the current price of Rs. 661 as on June 24, 2022, the stock has plunged over 30%from its issue price.
AGS Transact Technologies
The Company provides banking payment solutions, banking automation solutions and other automation solutions. Since its listing in January 2022, the stock has lost over 58% of its value from its issue price of Rs. 175, taking into consideration the LTP of Rs. 72.85 per share. The scrip made an at par listing on debut.
Prudent Corporate Advisory Services is into distribution of mutual fund and other wealth products including stock broking, life and general insurance, asset allocation, and trading platforms. This company also ranks among the IPO wealth destroyers of 2022 and has moved lower by over 21% as against the issue price of Rs. 630. The scrip's current price as of writing this copy is Rs. 497.55.
Importantly, as of Fy21, Prudent Corporate featured in the list of top 10 mutual fund distributors with respect to average assets under management.
Rainbow Children's Medicare Ltd
Rainbow Children's Medicare is engaged in the business of rendering medical and healthcare services. The Company is a multi-specialty pediatric, and obstetrics and gynecology healthcare hospital group.
The company made its D-Street debut in May this year and listed at Rs. 506 as against the issue price of Rs. 542. Currently, the stock trades at Rs. 456.75, which implies -85.25 or over 15% change from the issue price.
The company specializes in luxury watches and accessories. The Company is engaged in the trading of watches, accessories and luxury items, marketing and support services, and rendering of related after sale services.
The stock listed just a month back on May 30 and is currently trading at a price of Rs. 783.65. This is a negative change of Rs. 94.35 or 11% over the issue price of Rs. 878.
The story should not be interpreted as an investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution and carry out due-diligence while investing or trading in stocks.