Even as the central government achieved its disinvestment target in financial year 2017-18, several public sector stocks which got listed in that year are currently trading below their issue prices. Market participants say that high valuations and the recent rout in mid-cap stocks are some of the reasons for their under-performance. However, RITES and Mishra Dhatu Nigam, which got listed in FY19, have given 33.8% and 49.3% returns respectively. In the last financial year, the government had collected around Rs 24,000 crore only through initial public offerings (IPOs) of six state-owned companies. The biggest among them were General Insurance Corporation of India (GIC Re) and New India Assurance,together collecting around Rs 17,350 crore. Other stocks,including Housing and Urban Development Corporation (HUDCO), Cochin Shipyard, Hindustan Aeronautics (HAL) and Bharat Dynamics, have lost up to 23% since listing. \u201cAs mid-caps were doing well in FY18, a lot of IPOs for the same got listed at a higher valuation. Valuations of mid-cap companies were high in FY18 and a lot of stocks have corrected later. A lot of public sector companies which came with their IPOs in FY18 were from the mid-cap basket. Not only have PSU IPOs done badly but other mid-cap stocks in the private sector have also struggled,\u201d said Siddhartha Khemka, VP, head of research at Motilal Oswal. In the current calendar year, the Nifty Midcap index has fallen by 10.13%. HUDCO, which raised Rs 1,191.7 crore through an offer priced at Rs 60 per share in May 2017, is currently trading at `55.15, an 8% discount to its issue price. Shipbuilding company Cochin Shipyard, which raised `470.01 crore through an offer priced at `432 per share in August 2017, currently trades at `407, 6.1% below its issue price. The market capitalisation of HUDCO has shrunk from `14,523.7 crore to `11,250.6 crore since listing, while that of Cochin Shipyard has reduced to `5,641.3 crore from `7,179.46 crore, showed Bloomberg data. In addition, insurance companies GIC and NIA have lost the most in terms of market capitalisation at `16,807.1 crore and `18,379.8 crore respectively. Hindustan Aeronautics, which raised `4,054.6 crore through an offer priced at `1,240 per share in March 2018, is currently trading at `935, a 32.6% discount to its issue price, while another defence company, Bharat Dynamics, which raised `950.3 crore through an offer priced at `428 per share in the same month, currently trades at `333.8, 28.2% below its issue price. The market capitalisation of HAL has shrunk from `37,881 crore to `31,465.8 crore since listing, while that of Bharat Dynamics has reduced to `6,268 crore from `7,144.3 crore. \u201cDefence is one of the sectors wherein investors could see sudden interest due to scenarios such as new orders, etc. However, generally the growth in such companies is slow,\u201d added Khemka. In FY19, shipbuilding, railway construction defence companies such as Mazagon Dock, Rail Vikas Nigam, IRCON and Garden Reach Shipbuilders are lined up to get listed. Public sector companies in the defence sector that will be listed in FY19 are confident of their respective IPOs. \u201cThe IPO will help us get noted and we are open for the competition ahead,\u201d said the director of Mazagon Dock. The managing director of Garden Reach Shipbuilders said that the company has a strong order book apart from bright revenue visibility.