50% of November IPOs fall below their issue prices amid market crash

A sharp correction in equity markets has dragged half or four out of seven newly listed companies, that made a stock market debut in November, below their respective issue prices.

One97 Communications, the parent company of digital payments major Paytm, fintech company Fino Payments Bank, auto ancillary firm SJS Enterprises, quick service restaurant (QSR) Sapphire Foods are trading below their respective issue prices.

Individually, shares of One97 Communications (Paytm) tanked 19 percent to Rs 1,271 on the BSE, extending its 27 percent decline on 16th November 2021. With the 22nd November 2021 fall, the stock has fallen 41 percent against its issue price of Rs 2,150 as investors remain cautious on the company's lofty valuation and remain skeptical about its business model.

Those of Fino Payments Bank, too, dipped 19 percent to Rs 366 on the BSE in the intra-day trade of 22nd November 2021. The stock continued to trade lower for the fifth straight day. The stock had debuted on November 12, 2021, and is down 37 percent from its issue price. Fino Payments Bank is a fintech company offering a diverse range of financial products and services that are primarily digital and have a payments focus./span>

Besides Fino Payments Bank and SJS Enterprises, a total of seven recently listed IPOs were trading at their lowest level since their respective listing dates. The list includes Aditya Birla Sun Life Assets Management Company, Cartrade Tech, Chemcon Speciality Chemicals, Shyam Metalics and Energy, and Windlas Biotech

Source: Business Standard