Paytm’s IPO, the most famous in India to date, failed to meet expectations on a listing day, with the stock closing 27 per cent below the issue price of Rs 2150. It is presently trading at Rs 546 in March 2022.
However, this isn’t the first time a high-profile IPO has been passed by on its first trading day. So here is the list of some worst and best.
The worst IPOs of all time:
One of India’s most notable software entrepreneurs wept with delight at the Bombay Stock Exchange in November last year.
Paytm has become the darling of India’s enlarging fintech sector in the last five years, and it is backed by big-name foreign investors like SoftBank (SFTBF) and Warren Buffett. One97 raised $2.5 billion in the country’s largest IPO of all time.
Vijay Sharma, the company’s founder, described the vision of the company of bringing millions of Indians into the mainstream economy as “pious” at the listing ceremony in November.
On the other hand, the investors appear to be divided – Paytm’s shares dropped 27 per cent on its first day of trade.
Things have only grown worse four months later. The company’s shares are trading between Rs 540-550, more than 70% below its initial offering price.
It is not the only Indian online business that has had a bad year on the stock market. While Paytm has been a fiasco since its inception, other Indian digital behemoths whose beginnings were red-hot in contrast have also fallen in recent months.
2. Reliance Power
Due to the pent-up demand from investors who did not receive any allocation or received far fewer shares than they had bargained for, the Reliance Power 10,123 crore IPO was 72 times subscribed to, leading many to believe that the listing would be at a noteworthy premium.
However, it was not to be. The stock opened at a bit of premium but then fell precipitously. The shares finished at Rs 372, down 17% from their IPO price, and it has never come close to its initial price in all these years.
3. Coffee Day Enterprises
Coffee Day Enterprises issued a Rs 1,150 crore bond in November 2015, which was subscribed to 1.81 times. On the first day, the stock fell by more than 17%.
4. ICICI Securities
In April 2018, the Rs 4,017-crore ICICI Securities IPO had a disappointing response from investors, with just 78 per cent participation on the last day of the bidding process. However, the issue attracted 87.9 per cent bids when anchor allotment was included.
Following the under subscription, the business reduced the amount of its IPO to Rs 3,500 crore and the shares at Rs 520 each offered.
ICICI Securities was launched at a 16 per cent discount and completed the day 14 per cent below the price of the issue, despite anchor investors purchasing approximately a third of the shares for sale.
5. ICICI Prudential
Even though the Company’s Rs6,057 crore IPO was subscribed 10.48 times, shares of ICICI Prudential Life Insurance Co. Ltd closed over 11 per cent below their issue price on their maiden day on the stock markets.
Some of the most successful IPOs (by subscription):
1. Latent view
The Rs 600-crore Latent View Analytics IPO became the most heavily subscribed IPO in Indian capital markets history. It beat the IPO of Paras Defence and Space Technologies Limited to become India’s most subscribed IPO of all time. After piping Salasar Techno in late September 2021, Paras Defence and Space Technologies Limited IPO emerged as the highest subscribed IPO.
The analytics services provider IPO was subscribed to 326.47 times. Bids were received for a total of 5,72,14,30,100 shares against an issue size of 1,75,25,703 shares.
2. Paras Defence
The IPO of Paras Defence and Space Technologies continues to get investors’ good reaction. The transaction has been oversubscribed 304.26 times, with bids for 217.26 crore shares received against an IPO size of 71.40 lakh on the last day of bidding in September 2021. At the top price band of Rs 175 per share, the total bids received were worth more than Rs 38,000 crore.
Retail investors, who have endured in the forefront of the issue’s support, have bid 112.81 times their reserved piece, while a portion earmarked for non-institutional investors (NII or HNIs) has been subscribed 927.70 times.
Paras Defence and Space Technologies Limited is a corporation established in India. The company is in the planning, production, development, testing, and commissioning phase of defence and space systems, products, and solutions. Defense & Defense Electronics, Space Optics, Heavy Engineering, Electromagnetic Pulse Protection Solutions, and Niche Technologies are its five business sections.
3. Salasar Tech
Salasar Techno Engineering’s IPO was oversubscribed 272.93 times on the closing day. Salasar Techno Engineering Limited is a company that specializes in steel fabrication and infrastructure building. The company provides engineering, procurement, and control services for electrification, solar power plants, power and transmission lines. Salasar Techno Engineering provides many services like telecommunication towers, lighting poles, sub-station constructions, guard rails, and solar modules.
4. Apollo Micro
Apollo Micro Systems Limited is a manufacturer and distributor of electronic electromechanical engineering designs. The company distributes, makes, and advances the high-performance mission and time-critical solutions for Defence Space and Home Land Security for Ministry of Defence government-controlled public sector companies and private sector enterprises. In 2018 the IPO of Apollo microsystem was oversubscribed 250 times
5. Astron Paper
The Astron Paper IPO was 241.75 times oversubscribed. By December 20, 2017, the retail category had been subscribed to 73.32 times, the QIB category had been subscribed to 103.35 times, and the NII category had been subscribed to 396.99 times.
The Astron Paper IPO is a 14,000,000 share transaction. Retail investors will receive 4,655,000 shares, qualifying institutional buyers 1,330,000 shares, and non-institutional buyers 7,315,000 shares.
Astron Paper & Board Mill Limited produces Kraft paper. The company produces Kraft papers with GSMs ranging from 80 to 350 and BFs of 22 to 35. The company acquired a reputation in the kraft paper industry in a short period of time. It was possible to construct a brand associated with a qualitative and large category of kraft papers.
Edited by Prakriti Arora