While 2024 is shaping up to be a record-breaking year for IPO fundraising, the post-listing performance of many companies has been less than stellar.
Data compiled by online publication platform MoneyControl shows that around 40% of firms that debuted on the stock exchanges this year are currently trading below their issue prices, with market corrections since October eroding initial gains.
More than 75 companies have collectively raised over Rs 1.2 lakh crore through IPOs this year. However, market volatility has taken a toll, even on those who made strong listing-day debuts.
In the Freefall after Stellar Debut
To begin with, ECOS India Mobility & Hospitality, which surged 33% on its first day, now trades 1% below its issue price. Similarly, Apeejay Surrendra Park Hotels and Saraswati Saree Depot, which rose over 31% on debut, are now trading 4% and 25% lower, respectively.
Other high-profile entrants have seen similar declines. Northern ARC Capital and Ola Electric Mobility gained 23% and 20% on their listing days but are now trading more than 10% below their issue prices. Stocks like Shree Tirupati Balajee Agro Trading and Akums Drugs & Pharmaceuticals have also reversed gains, now down 13% and 6%, respectively.
Market Conditions Dampen Sentiment
The downturn coincides with a sharp correction in the broader market. Since hitting record highs in September, the Sensex and Nifty have each dropped over 10%, while the BSE MidCap and SmallCap indices have declined 8-9%. Rising US 10-year bond yields have also prompted Foreign Portfolio Investors (FPIs) to retreat from Indian markets.
Biggest Losers
Among the steepest fallers, Popular Vehicles & Services, which was listed at a 6% discount, has plunged over 46% from its issue price. Capital Small Finance Bank and Akme Fintrade India are down 38% and 32%, respectively, while Western Carriers, R K Swamy, and Deepak Builders & Engineers India have dropped 26-31%.
Bright Spots
Despite the broader slump, a few companies have bucked the trend. Firms like Entero Healthcare, Vraj Iron & Steel, Arkade Developers, Swiggy, Afcons Infrastructure, and Gopal Snacks are trading slightly above their issue prices.
