Amid a buzzing IPO market, new stock listings in May offered a mixed bag of results to investors. Half of the eight stocks that debuted on Dalal Street last month ended up in losses.
Amid a buzzing IPO market, new stock listings in May offered a mixed bag of results to investors. Half of the eight stocks that debuted on Dalal Street last month ended up in losses, with the other half being flat to moderately green, a report by Axis Capital showed. The losers included Life Insurance Corp of India (LIC), the largest public issue ever to hit the Indian stock market, raising Rs 20,557 crore. The pipeline of IPOs still remains strong with as many as 66 public issues sitting with valid SEBI observations
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Stocks that listed in May
Campus Activewear was the first company to list on the stock exchanges in May after its Rs 1,400 crore IPO, rising 22% on listing day. The stocks of Campus Activewear added to their gains and closed May 26% above the issue price.
Rainbow Children’s Medicare was the second firm to make its debut in May, falling 7% on listing day itself. By the end of the month, shares of the company were down 9% from the IPO price.
Life Insurance Corporation of India’s much-awaited issue was listed on May 17, and disappointed investors with a 9% fall on debut. At the end of the month, LIC shares were down 14% from the issue price.
Prudent Corporate Advisory Services shares saw a 5% premium listing on the bourses after its Rs 538 crore issue. However, by the end of the month, shares of the company had given up all gains and turned negative with a loss of 7% over the IPO price.
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Delhivery was another popular name that debuted on the stock exchange last month. Shares of the company rose 1% on listing and were up 9% by the end of the month.
Venus Pipes & Tubes shares entered the stock exchanges after the company’s Rs 165 crore IPO and rose 3% on the initial day of trade. However, as the month progressed the stock slipped and ended the month only 1% above the issue price.
Paradeep Phosphates entered the bourses after its Rs 1,502 crore IPO and rose 4% on listing day. At the end of the month, however, the stock was trading at par with the issue price.
Ethos was the last stock to make its debut in May. The shares of Ethos fell 5% on listing and continued to fall, resulting in an 8% drop from the IPO price by the end of the month.
IPO pipeline remains strong
Axis Capital said that 66 companies are currently sitting with SEBI observations that are still valid. These companies can come up with an IPO without having to file fresh papers with the market regulator. Some of the marquee names among these are Aadhaar Housing Finance Bikaji Foods International, TVS Supply Chain Solutions, Imagine Marketing (BoAt), FabIndia, Asianet Satellite Communications, Inox Green Energy, Capital Small Finance Bank, Sterlite Power Transmission, VLCC Healthcare, One Mobikwik Systems, and Go Airlines.
