7 of 10 biggest IPOs of 2018 in losses

Indian stock market has remained volatile in 2018 amid concerns of weakening rupee, deteriorating current account and fiscal deficit, surging bond yields, rising interest rates and expectations of a higher inflation. The volatility has severely affected the performance of IPOs launched this year: The S&P BSE IPO Index has fallen nearly 14.7% between 1 Jan 2018 and 28 September 2018, compared to BSE Sensex that gained 7.1% during the same period.

Some 69 companies raised over Rs 27,900 crore through IPOs this year—80% of this money was raised by just 10 companies. The share price performance of 47 (out of 69) regularly-traded companies shows that 60% of them are trading below their issue prices.

Of the top 10 IPOs by issue size, only three companies are trading above their issue prices. Bandhan Bank been the best performer, followed by HDFC Mutual Fund and Lemon Tree Hotels. ICICI Securities, Indostar Capital and Hindustan Aeronautics have been the biggest losers.


Over Rs 4,700 cr of wealth destroyed

Source: ACE Equity. *Latest price as on 28 September 2018.

BSE IPO index falls 15% in 2018

Beyond the top 10 IPOs, Inflame Appliances, a small-cap company with market-cap close to Rs 40 crore has surprised investors with 76% returns over its issue price. The company is engaged in manufacturing of LPG gas/stoves and its IPO issue size was Rs 6.48 crore.

The biggest loser among the 47 companies considered has been Ashoka Metcast. It lost close to 75% of its issue price value. The company was listed at 20% below its issue price. Ashoka Metcast is a small-cap company engaged in trading and manufacturing structural steel products like TMT bars, angles, channels, MS Bars and has a market-cap of Rs 5.6 crore. Its IPO issue size was Rs 12 crore.