Market veterans highlight the losses new-age tech firm investors are sitting on
2 min read . Updated: 18 Jan 2023, 02:53 PM IST
Premium- Investors have made total loss of about ₹1,81,471 crore from 20 recently-launched IPOs
Shares of cosmetics-to-fashion retailer Nykaa are in the news these days as investors have lost a massive amount of wealth in the past few months. Though listing of FSN E-Commerce Ventures, the parent of Nykaa was a big hit as it listed on the Indian stock market at a bumper premium of 71%. Nykaa launched in October 2021 at a price band of ₹1,085 to ₹1,125 per equity share. Its share price went northward after listing and climbed to its lifetime high of ₹2,573.70 apiece. However, the stock has been hitting fresh lows since February 2022.
The shares of Nykaa on Wednesday's early trade fell to an all-time low at ₹123 apiece, down more than 6% on the BSE.
However, Nykaa is not the only company whose valuation has collapsed like a house of cards after registering a bumper opening in the stock market, there are several other recent IPOs where investors have incurred big losses in recent times.
Such companies include -Zomato, Paytm, Policybazaar, CarTrade, etc, in which investors have been bleeding heavily and chances are the recovery of their money looks quite bleak.
Market veteran Mahesh, who is an AMFI-registered mutual fund distributor wrote that investors have made total loss of about ₹1,81,471 crore from 20 recently-launched IPOs.
Citing data from CNBC Awaaz, Mahesh wrote, "Retail investors have given promoters, VCs an exit at ridiculous valuations".
As per the data shared by Mahesh, One97 Communication, the parent company of Paytm has caused ₹104880 crore of losses to retailers, followed by PB Fintech ( ₹23,910 crore), Zomato Ltd ( ₹19,433 crore), Star Health and Allied Insurance (8003 crore), FSN e-commerce Ventures ( ₹7,392 crore), LIC ( ₹5,399 crore), Card Trade Tech ( ₹5,398 crore), AGS Transact Technologies ( ₹453 crore), Fino Payments Bank ( ₹669 crore), Krsnaa Diagnostics Ltd (1,204 crore), Windlas Biotech ( ₹159 crore), Glenmark Life Sciences ( ₹650 crore), Shriram Properties ( ₹544 crore), Aditya Birla Sun Life AMC ( ₹1005 crore), Inox Green Energy Services ( ₹239 crore), Vijaya Diagnostic Centre ( ₹578 crore), Uma Exports ( ₹15 crore), Medplus Health Service ( ₹1205 crore), Supriya Lifesciences ( ₹127 crore), and India Pesticides ( ₹188 crore), respectively.
Giving a reference to Ashneer Grover's tussle with Kotak Group regarding Nykaa IPO launch, stock analyst Aditya Shah wrote, "Grover must be thanking his luck," and added, "New age tech companies narrative is now busted".
A user with Twitter handle “Contrarian EPS", wrote that 90% IPOs end in losses, sometime huge unrecoverable losses. And added, "Still people get sucked into IPO for occasional winners like DMart".
