Shares of this newly listed firm crash 60% in just 13 days after IPO-less stock exchange debut

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Updated: December 5, 2017 11:12:45 AM

Despite a bright performance in equities and IPOs in 2017, there is one such stock which has lost over half of its value in just 13 days of trading.

 slight re5paisa Capital shares crashed 10% to Rs 194.15 on NSE and 10% to Rs 315.45 on BSE today. (Image: Reuters)

Indian stock markets have risen with an unmatched growth in 2017 and beaten almost every nation in terms of returns except Hong Kong’s Hang Seng among the major economies of the world. Broadly, the IPO (initial public offering) market has also emerged as hit so far this year with the corporates collectively raising a sum of about Rs 65,000 crore. In 2017, investors saw some of the biggest public offers of India, notably from Rs 11,370 crore of GIC Re, New India Assurance Rs 9,600 crore, HDFC Standard Life Insurance Rs 8,700 crore, SBI Life Insurance Rs 8,400 crore and ICICI Lombard General Insurance Rs 5,700 crore.

Interestingly, out of Rs 65,000 crore raised so far from public issues, Rs 43,800 has garnered from the above-mentioned insurers only. Despite a bright performance in equities and IPOs, there is one stock which has lost half of its value in just 11 days of its IPO. Shares of small-cap stock 5paisa Capital which recently marked their debut on stock exchanges on 16 November in an IPO less listing are reduced to half from their listing price.

Shares of 5paisa Capital which made stock exchange debut subsequent to the demerger from the IIFL Group got listed at Rs 400 on NSE and at Rs 650 on BSE. On the very first day of trading, the stock tanked 5% to Rs 380 on NSE. Over the period of about 13 trading sessions up till today, the stock has been on a continuous declining trend. 5paisa Capital shares have tumbled 54.75% from its opening price of Rs 400 on NSE. Earlier Friday last week, shares of 5paisa Capital dived 10%. 5paisa Capital shares dropped 4.89% to hit a fresh all-time low of Rs 269.8 on BSE while it shed 3.36% to Rs 181 on NSE, respectively. 

Meanwhile, Indian equities again fell on Tuesday after a yesterday’s slight recovery. The 30-share barometer Sensex washed off as much as 187.2 points to hit the day’s low of 32,682.52 while the broader Nifty dropped 58 points to 10,069.1. BSE Sensex shed 55.69 points or 0.17% to begin at 32,814.03 whereas NSE Nifty started the day at 10,118.25, down 9.5 points or 0.09%.

Earlier last week, in a major boost for Narendra Modi’s Gujarat state election campaign, India’s GDP growth sharply rebound to 6.3% in fiscal second quarter July-September from a three-year low in the first quarter, as businesses sprung into economic activity ahead of a condensed festive season and accelerated production to build inventory after the implementation of GST.

(First published Friday, 1 December 2017 on www.financialexpress.com)

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