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Why IPO Listed in Discount Despite Good Market

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August 2021 was the month of IPOs and we have seen a bunch of IPOs hit the market. It was going nice with higher listings even doubled the investments in few weeks in IPOs but what happened suddenly? After Covid-19 the IPO market was booming but it dried down the positive listings. What do experts say about the IPO listing in discount even in the bull market?

The experts are pointed down a few of the points that might be the reasons for discount listing. It might be the oversupply or the poor quality of the IPOs. Total 10 IPO are listed in the August and 5 are listed in green while 3 are listed in red and 2 are with a flat listing. The last IPO listed in discount was the Lodha Developers that was in April 2021.

In 2021-2022 around 20 IPOs that raised more than 45000 crores and in just August 50% of the IPOs hit that are Aptus Value Housing, Chemplast Sanmar, Nuvoco Vistas, CarTrade, Windlas Biotech, Devyani International, Exxaro Tiles, Krsnaa Diagnostics, Rolex Rings and
Glenmark Life Sciences.

As per the experts, there might be negative trends in the upcoming IPOs but we might see some good listing in the year-end as the big companies might hit the market. As the market is going on high but the IPO listing depends on the company’s strong presence and the high demand in the market. The grey market has also shown good numbers for some of the IPOs but later on, due to less subscription and the market demand, it goes down. The listing of the IPO in August is as given below with the listing gain or loss on the listing day.

Positive IPO Listing:

  • Devyani International – 57%
  • Rolex Rings    ₹900 – 38%
  • Krsnaa Diagnostics – 5%
  • Glenmark Life Sciences – 4%

Flat IPO Listing:

  • Exxaro Tiles – 1%
  • Chemplast Sanmar – 2%

Negative IPO Listing:

  • Aptus Value – (-6%)
  • Nuvoco Vistas – (-17%)
  • CarTrade Tech – (-1%)
  • Windlas Biotech – (-5%)

Let’s see how Ami Organics and Vijaya Diagnostic IPOs will list in this market.

Note: The article is written by our research team and if any one has any issues regarding the content please email us on ipowatchinfo (at) gmail (dot) com.

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