The worst ipos in the the history of stock market
May 1, 2020
What is an IPO?
An IPO stands for Initial Public Offering. An initial public offering refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors. The transition from a private to a public company can be an important time for private investors to fully realize gains from their investment as it typically includes share premiums for current private investors.Whenever IPOs set foot in the stock market there sole aim is to appreciate their values.
But with all the aims and targets with which a company steps into the market, are not always met. Similar can be shown through some of the worst IPOs in the history of Indian stock market. There is something called an issue price, in simple language it means the price at which the IPO started trading in the stock market. And the performance of the IPO is determined by the difference in the market price and the issue price.
Look at some of the IPOs which incurred big loss on day 1 of opening.
- Varroc Engineering – Varroc engineering is a global tier-1 company (tier-1 companies are companies that directly supply to original equipment manufacturers automotive component group). The Issue price was Rs 967 and on day 1 it faced a change of -9.0%.
- TCNS Clothing Co. – TCNS Clothing Co. is India’s leading women’s branded apparel company terms of total number of exclusive brand outlets as of May 2018, according to Technopak. The issue price was Rs716 and it incurred a change of -13.7%.
- CreditAccess Grameen – CreditAccess Grameen Limited was born out of the need for timely and affordable credit to India’s poor and low-income households. The issue price – Rs 418, faced a loss of -30%.
- Bharat Dynamics – Bharat Dynamics is one of India’s manufacturers of ammunitions and missile systems. It was founded in 1970 in Hyderabad, Telangana. The issue price was Rs 428 and the change -34.3%.
- ICICI Securities – ICICI Securities Limited is a Registered Investment Advisor under SEMI Investment Adviser Regulations, 2013 and has been offering advisory services under the brand ICICI direct Investment Advisory Services. The issue price was Rs 520 and the loss – 44.6%.
These were the IPOs listed in 2018
And some of the worst listed IPOs in the history of indian stock market are
- Ortel Communications Ltd – Ortel Communications Ltd is a leading cable television and high-speed broadband services provider focused in the Indian states of Odisha, Chhattisgarh.
- Adlabs Entertainment Ltd – ADLABS Entertainment Ltd was incorporated as a private limited company on February 10, 2010 at Mumbai. It is a hospital and health care company based out of Maharashtra, India.
- Nouritrans Exim Ltd – Nouritrans Exim Ltd is a company which offers rice, sugar, mango pulp, as well as pet bottles etc. It provides imports and exports services.
- Infibeam Avenues Ltd – Infibeam is a leading digital payents and e-commerce technology platforms company in India.
Know more about stock market with Venteskraft. Read “ Meet Your Daily Expenses with Stock Market” By Mahin BS CEO Venteskraft.