4 out of 6 IPOs trading below issue price
Among the new listings this year, state-run National Buildings Construction Corporation (NBCC) is the biggest loser with the stock currently trading 18.86 per cent below its issue price of Rs 106 per share. NBCC is followed by Olympic Cards which lost 3.33 per cent from its issue price of Rs 30.
Shares of commodity exchange MCX at present trade 2.82 per cent below its issue price of Rs 1,032 per share. Even the recently listed Tribhovandas Bhimji Zaveri is down, albeit marginally (0.2 per cent) over its issue price of Rs 120.
Meanwhile, the only two companies which have given decent returns to IPO investors are tutorial firm MT Educare (14.18 per cent) and BCB Finance (0.20 per cent).
According to market participants, most companies listed during the year are trading way below their issue price because of weak stock market and sluggish investor confidence.
"Investors are nervous and not very enthuse about the IPO market. Moreover, they have stopped participating in the secondary market due to high volatility in the stock market," an expert said.
Market experts have blamed poor market conditions behind the weak show by these newly listed companies on the bourses.
With shares of most companies listed this year slipping below their issue prices and two initial public offerings (IPOs) already withdrawn, the scenario has remained challenging for the primary market.
There seems no end to
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