Shares of 11 out 21 companies which offered to trade publicly earlier this year have been recorded lower than their issue price. The impact on issue price is subjected to market turmoil and uncertainty causing the stock to end in red, reported live Mint.
The stock market listed 21 initial public offers (IPOs) in 2018. The Market has been crashing due to currency fall, sectors-issues, and higher crude oil prices. Impact of the global trade war between the US and China can also be cited as one of the reasons for volatility.
5 Stocks which lost the most
Among the notable names who lost the most was Apollo Micro Systems Ltd. It broke down 50% from its initial offering. It traded at a gain of 65% on its issue price of ₹478 per share on its first day. In the Friday trade, the shares of Apollo Micro Systems Ltd. were trading at ₹139.50.
Next in line is ICICI Securities Ltd. which went down 39% from its issue price. The IPO was listed in April this year and had to lower its IPO size due to low subscription. The buzz of accusation on Chanda Kochhar, CEO of ICICI bank had a bad effect on the stock.
Indostar Capital Finance and Hindustan Aeronautics lost 28% and 23% respectively.
Bharat Dynamic which offered its debut issue price at a discount of 9% ended 22% lower ranking 5th among the worst five performances in IPOs.
Best Performing IPOs
HDFC Asset Management Co. Ltd. witnessed its first low in earlier this week at ₹1408 in Wednesday trade due to Sebi’s revision in the total expense ratio. It has been the best performing stock till now with over 65% gains on its debut day.
Bandhan Bank made a stellar debut with the highest IPO in the history of banking. The stocks recorded 27.25% gains on its opening day only to get higher. Although, it has lowered it’s highest offering price of ₹741.