7 Newly Listed Companies That Are Trading At A Discount To IPO Price

Newly listed companies that made their debut on the bourses in 2021 are trading at a steep discount to the issue price, with some of them recovering from their 52-week losses. The one reason attributed for the sharp losses in these counters or typically new age tech stocks has been influenced by the US markets, wherein investors in a sudden move no longer has the appetite for highly valued tech firms.

7 Newly Listed Companies That Are Trading At A Discount To IPO Price

Recently listed companies trade at steep discount to IPO price

Stock	IPO price	CMP	% decline
Cartrade Tech	1618	613.5	62.00%
Fino Payments Bank	577	322.6	44.00%
Krsnaa Diagnostics	954	603.9	36.69%
One97 Communications	2150	849.95	60.00%
PB Fintech	980	763.35	22.00%
Windlas Biotech	460	270.2	41.00%
Chemplast Sanmar	541	517.05	4.00%

What experts make of the loss in the valuations for these newly listed entities?

Experts are of the view that these companies will continue to face pressure to regain the premium valuations at which they were sold in the primary market. Further, the pressure will only mount as the US Fed will begin to increase interest rate trajectory.

Further Geojit Financial Services' Vinod Nair is of the view that higher valuation and loss making status will continue to be a blow to these firms as the sentiment will turn risk-averse and the focus shall shift to value picks.

Moreover there is another view that advocates buying into these scrips in small quantities exercising some caution as India is also changing its pace and rapidly adoptive innovative technology.

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