Indian equity markets are on a rampage. Benchmark equity indices Sensex and Nifty have risen over 21%-22% so far this year since January, with NSE Nifty-50 hitting a historical five-digit mark of 10,000 points for the first time ever. Amid the continued bull run, companies’ promoters too are not behind and want to ride on the wave, coming up with the public issues of shares to raise cheap capital as markets scale new highs. This year, 23 IPOs have been launched, including those of the Bombay Stock Exchange (BSE Ltd) and its subsidiary CDSL’s highly-subscribed issue.
However, there are always some dark spots. Amid the continuing euphoria, we take a look at nine IPOs launched in the last three years whose shares have since fallen to below half of the issue price, while the benchmark indices have surged over 45% since May 2014, when the new NDA government led by Prime Minister Narendra Modi came into power. Here is a list of nine IPOs of the last three years which have since fallen to less than half of their issue price.
Radhika Jewellers was listed in September 2016 with an issue price of Rs 75 on BSE. The company is into the business of retailing gold and diamond studded jewellery. The stock has steadily fallen since after few days of its listing and at Friday’s close of Rs 21.15, is down as much as 72% from the issue price.
Osiajee Texfab Ltd’s shares made debut on stock exchanges in January 2016 at an issue price of Rs 25. The company’s main business is textile manufacturing. The stock has been very volatile since its listing and has lost almost 52% since then. It ended at Rs 12 on Friday.
Yogya Enterprises stock was listed in April 2015 at the issue price of Rs 15. The company has business interests trading, IT infrastructure, financial services, consulting and information technology. Shares of the company traded well above its issue price till November 2015 and marked a 52-week high of Rs 27.3 in October 2015. But the stock fell sharply after November 2015. It ended at Rs 5.5 on Friday, down 63.33% from its issue price.
Inox Wind – a domestic wind energy service provider – made its stock market debut in April 2015 at the issue price of Rs 325. The stock of Inox Wind has been continuously falling since after the listing and has lost 57.15% from the issue price at its Friday’s close of Rs 139.25.
Adlabs Entertainment is engaged in the business of development and operations of theme-based entertainment destinations in India. It went public in April 2015 at the issue price of Rs 180. The stock has been trading lower than its issue price since after the listing and has lost 60.89% at its Friday’s close of Rs 70.4.
Regional cable television service provider Ortel Communications went public in March 2015 at an issue price of Rs 181. The shares went on to trade above its issue price till October 2015 and made an all-time high of Rs 231 in the same month. But since then the stock has been falling continuously and has lost 67.38% to its Friday’s close of Rs 59.05.
Powerhouse Gym & Wellness
Powerhouse Gym & Wellness, the gym and equipment services provider was listed in October 2014 at an issue price of Rs 30. The stock traded above its issue price till May 2015 and hit an all-time high of Rs 54 in the same month. But since May 2015, the shares are continuously falling and have lost over 73% from the issue price to its Friday’s close of Rs 8.09.
Trivikrama Industries, a company which is into household insecticides industry, went on to list on the exchanges in August 2014 at an issue price of Rs 15. The shares of the company have not traded in at least last one month. At its last traded price of Rs 4.96, the stock had lost about 67% from the issue price.
GCM Capital Advisors
GCM Capital Advisors is a diversified financial services company mainly engaged in the business of providing financial advisory and consultancy services. It made it stock market debut in May 2014 at an issue price of Rs 20. The shares of the company went on to trade above its issue price till December 2014 and hit the all-time high of Rs 141.6 in the month. But its shares fell sharply after December 2014, and are now down over 84% from its issue price. It ended at Rs 3.16 on Friday.