Devyani, four others gain but CarTrade, four others fall after August IPOs

02/09/2021

Indian companies have been rushing to launch initial public offerings in 2021, and there are more to come over the next few months. In September alone, almost a dozen companies could float their share sales. But amid all this euphoria, how have companies that listed on stock exchanges last month performed?

Overall, at least 20 companies have gone public since April this year and raised around Rs 45,000 crore through IPOs. In August, 10 companies made their trading debuts, and the list of winners and losers is divided equally. Of these, three companies were from the healthcare sector—Glenmark Life Sciences, Krsnaa Diagnostics and Windlas Biotech—seeking to take advantage of the bullish sentiment in the wake of the Covid-19 pandemic.

The other companies that listed in August were KFC chain operator Devyani International, Rolex Rings, Exxaro Tiles, CarTrade, Chemplast Sanmar, Nuvoco Vistas and Aptus Value Housing Finance. All these IPOs were oversubscribed. In particular, Krsnaa Diagnostics and Devyani International attracted huge response to their offerings.

Analysts say excess supply and stretched valuations are among the factors that pulled shares of several companies down. Here’s a quick check on who gained and who didn’t since the listing.

Devyani and other winners

Devyani International Ltd, which operates Pizza Hut, KFC and Costa Coffee chains in India, had surged 37% on its debut against its issue price of Rs 90. Its shares are now trading around Rs 125 apiece.

Auto components maker Rolex Rings had jumped 30%on its debut on August 9 compared to the IPO price of Rs 900.Its shares are still 20% above the issue price.

Exxaro Tiles climbed 10% on its debut on August 16 and now around Rs 132.45 apiece versus the issue price of Rs 120. Specialty chemicals maker Chemplast Sanmar closed about 1% on debut but has since gained 14%.

Aptus Value Housing Finance had also fallen 1% on its trading debut but is now above its IPO price of Rs 353.

CarTrade and other losers

Glenmark Life was first of the block, listing on August 6. Its shares gained almost 4% on the first day against the issue price of Rs 720. The shares subsequently touched almost Rs 800 before falling to close at Rs 670.85 on September 2.

Krsnaa Diagnostics had closed 4%higher the same day against the issue price of Rs 954. But it has now slipped below the issue price.

Windlas Biotech had fallen 11% on its debut from the IPO price of Rs 460. Its shares are now at Rs 394.2 apiece.

CarTrade lost 8%on its debut and is now 10% below its issue price of Rs 1,618.

Cement maker Nuvoco Vistas Corporation dropped 7%on its first day but has inched up since then to close in on its issue price of Rs 570 per share.

To know more about IPOs and how to apply and check IPO allotment status, click here.

 

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