From Hyundai to Paytm: A look at India’s biggest IPOs that disappointed investors with weak listing
- Many of India’s biggest IPOs, including Hyundai Motor India, Paytm and Reliance Power have resulted in losses for investors. Only a few large IPOs — such as Coal India, Zomato, and HDFC Life Insurance — have generated positive returns, with their shares trading above the issue price.
The primary market in India is abuzz with the much anticipated initial public offering (IPO) of Swiggy Ltd to be launched on November 6. The online food and grocery delivery company plans to raise a massive ₹11,327.43 crore from the public issue, making it one of the biggest IPOs in India.
India’s IPO market has seen some massive public offerings, with several surpassing the ₹10,000 crore mark. Historically, while many have promised great returns, not all have managed to deliver. Many of India’s biggest IPOs, including Hyundai Motor India, Paytm and Reliance Power have resulted in losses for investors.
On the contrary, only a few large IPOs — such as Coal India, Zomato, and HDFC Life Insurance — have generated positive returns, with their shares trading above the issue price.
Here’s a look at the five biggest IPOs which faced weak listings:
Hyundai Motor India IPO
Hyundai Motor India IPO worth ₹27,870.16 crore is India’s biggest IPO till date and was launched on October 15, 2024. Hyundai Motor shares made a muted debut on the Indian stock exchanges on October 22 as the stock was listed at ₹1,931 on BSE, a discount of 1.5% to the issue price of ₹1,960 per share.
Hyundai Motor shares are trading below its IPO price and hit a low of ₹1,751.65 apiece on October 29. On November 4, Hyundai Motor stock ended at ₹1,814.55 apiece, still lower by 7.4% from its IPO price.
LIC IPO
The ₹21,000-crore worth LIC IPO, launched in May 2022, debuted at a discount of over 8% to its issue price of ₹949 per share. Market sentiment and valuation concerns contributed to the tepid listing.
Paytm IPO
One97 Communications, the parent company of fintech giant Paytm, launched its IPO in November 2021. Despite high anticipation, the Paytm stock listed at a 9% discount. Paytm share’s post-listing performance suffered due to doubts over profitability and expensive valuations. Paytm stock price is down by over 64% from its IPO price.
Reliance Power IPO
Reliance Power’s ₹11,560-crore worth IPO was launched in February 2008 and the Anil Ambani Group stock was listed at a 17% discount. Reliance Power shares are down over 85% from its IPO price.
SBI Cards & Payment Services IPO
SBI Cards made its debut in March 2020 with a ₹10,355 crore IPO, just as the COVID-19 pandemic was beginning to impact markets. SBI Cards shares were listed at a 13% discount to its issue price of ₹755, mainly due to the broader market sell-off and valuation concerns. The stock is still down more than 8% from its issue price.
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