The unprecedented buying interest witnessed for shares of InterGlobe Aviation seems to have waned as the company lost more than Rs 15,000 crore of market capitalisation since its peak during early January.
Shares of InterGlobe Aviation lost more than 25% in last two sessions after the Gurgaon-based company indicated that it might miss its March fleet size target due to delay in delivery of A320Neo planes. Earnings of InterGlobe
Aviation for Q3FY16 were also lower than expectations of the Street.
Shares of InterGlobe Aviation, which controls the India’s biggest airline by market share, Indigo Airlines, closed at R903 apiece on Monday. The current share price of InterGlobe is just 2.5% higher than the listing price of Rs 878.45, stock exchanges data showed.
“We believe the largest risk facing IndiGo is the timing of aircraft deliveries in and out of market cycles. Thus far, relative mismanagement by the competition has led to easy market share gains and well-timed capacity additions. However, addition of new foreign-backed rivals could force IndiGo to up their game or face challenges to their leading market share,” said US brokerage Citi in a research report.
Shares of all the companies that listed on bourses in the last three months have witnessed major declines owing to recent market corrections. In fact, shares of Alkem Laboratories, Dr Lal PathLabs and Narayana Hrudayalaya were trading lower their listing prices.
Alkem Laboratories’ shares closed at Rs 1,355.75 apiece on Monday, against the listing price of Rs 1,381.45, data showed. Shares of Dr Lal PathLabs closed at Rs 750.50 on Monday – a 9% fall from listing price of Rs 824.15 per share. Shares of Narayana Hrudayalaya is currently trading at Rs 329.90, against the listing price of Rs 336.7 apiece, data showed.
Despite volatility in the equity markets, primary markets continue to witness traction. Four companies — Precision Camshafts, Teamlease Services, L&T Infotech and Parag Milkfoods — are planning to launch their initial share sales during the next one month. Together, these companies plan to raise close to Rs 4,000 crore, calculations based on draft filings showed.