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It was a mixed bag for the five companies that debuted last week on bourses with two caught in the market mayhem and falling below their issue price, and three holding on to their initial gains.
These five companies had cumulatively raised about ₹5,000 crore and investors had been waiting expectantly for their listing.
Shriram Properties, the first to be listed last Monday, had a weak start with the stock opening at a discount of 24 per cent at ₹90 against the issue price of ₹118. It was the second scrip to list at a discount in recent times after RateGain Travel Technologies.
Similarly, Rakesh Jhunjhunwala-backed Metro Brands made a weak listing at ₹436 — at a 13 per cent discount to the IPO price of ₹500 per share; it remained below the issue price at ₹471 on Friday.
After a bumper listing at a premium of 51 per cent at ₹1,565 a share on the NSE against the issue price of ₹1,033, MapmyIndia managed to retain most of its gains and ended the week at ₹1,432.
Medplus Health Services and Data Patterns also retained their listing gains and closed at ₹1,075 and ₹755 on Friday against their issue price of ₹796 and ₹585, respectively.
The benchmark Sensex had gained 1,302 last week after shedding 1,271 points the previous week ended December 17.
Bull market trouble
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said stock markets often overreact both on the up and downside and the bulish exuberance in the secondary market gets reflected in the primary market.
Typically, in a bull market, even IPOs of suspect quality get oversubscribed and retail investors who are mostly driven by market sentiment are left in the lurch, he added.
S Ranganathan, Head of Research, LKP Securities, said that while the buoyancy in exports and tax collections coupled with the success of performance-linked incentive schemes are positives, rising cost remains a concern. Many sectors are on the cusp of consolidation and this is where long-term investors must focus in the present corrective phase, he added.
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