The IPO season has been packed with several tech-heavy new-age companies making their debut in the first fortnight of November. From Groww’s rollercoaster ride to Orkla India’s stable first week, the listing journey of each of these counters has been unique in its own way. Here is how the key listings in November fared.
Orkla India
Orkla India hit the bourses on November 06 at Rs 751.50, a premium of 3% to the issue price of Rs 730. However, the stock price quickly declined 6.6% to Rs 702 soon after the listing. Since listing, the stock has fallen 5%. Trade on November 20 closed down 4%.
Commenting on the company’s valuation, Anand Rathi Research valued the company at a P/E of 31.5x to its FY26 annualised earnings at the issue price of Rs 730 per share. They highlighted the long-term profitability of the company as a key differentiator.
Lenskart Solutions
Lenskart Solutions’ shares listed at 3% discount at Rs 390 vs the issue price of Rs 402 on the BSE on November 10. Meanwhile, on the NSE, Lenskart shares debuted at a discount of 1.74% at Rs 395. The stocks of Peyush Bansal-led eyewear retailer have gained 3% since listing. On November 20, the share price closed 3% down.
The street was sceptical about the valuation of the company. However, Sunny Agrawal, Head of Fundamental Research at SBI Securities, highlighted that the current rate is already pricing in the positives over the next 1-2 years. They need to see profitability over the longer term.
Groww
The Billionbrains Garage Ventures, parent of Groww, made a strong debut on D-Street, with shares listing at a premium over the issue price. The stock was listed at Rs 114 per equity share on the BSE, a 14% premium to the issue price of Rs 100. On the NSE, the stock was listed at Rs 112 apiece, a premium of 12%.
However, after the initial surge in the first few days that took the stock up nearly 94% from the issue price, the tide turned. In the last two days, the prices have corrected by almost 20%. Talking with Financial Express on November 19, market veteran Ambareesh Baliga explained, “The float was very low. As a result of this, there wasn’t much selling initially, though most people had been negative on growth based on their valuations. People would have also gone short, thinking that they would buy back, but that didn’t happen. So, because of this, there was a short squeeze.”
Pine Labs
The Fintech firm Pine Labs shares hit the bourses on November 13, listing at a 9.5% premium at Rs 242 to the issue price. The stock closed 14% higher compared to the issue price of Rs 221 per share. Since listing, the stock has fallen 4.6%.
On November 20, the share price of Pine Labs closed the session at 1% lower at Rs 239.25.
Post the listing of Pine Labs, Emkay Global initiated coverage on Pine Labs with a ‘Reduce’ rating and a target price of Rs 210. The brokerage expects competitive intensity to rise across both segments, as adjacent-market players are increasingly targeting these pools. However, Pine Labs has a strong value proposition in the enterprise POS segment (supported by high customer stickiness driven by deep software integration) and dominant position in EMI aggregation (owing to its early-mover advantage).
PhysicsWallah
PhysicsWallah had seen one of the the strongest listing among the new-age companies,at 33% premium to the issue price of Rs 109. The shares of PhysicsWallah closed the listing day, November 18, 8% higher than the listing price. The closing price brought in a net gain of 44% on the listing day. However the good run did not last for two long. It has fallen 11% on November 20. This is the second consecutive day fo fall for the new listed counter.
Many analysts have raised concerns about PhysicsWallah’s valuation, and the offline expansion strategy is seen as a drag on the near-term numbers. However, according to InCred Equities. “As the business scales up, we expect profitability over the medium- to long-term.”
