50% of November IPOs fall below their issue prices amid market crash

PB Fintech, Fino Payments Bank, SJS Ent, KIMS, Ami Organics, Zomato and Sansera Engg from the BSE IPO index were down between 6 per cent and 19 per cent in intra-day trade today

A sharp correction in equity markets have dragged half or four out of seven newly listed companies, that made stock market debut in November, below their respective issue prices.

One97 Communications, the parent company of digital payments major Paytm, fintech company Fino Payments Bank, auto ancillary firm SJS Enterprises, quick service restaurant (QSR) Sapphire Foods are now trading below their respective issue prices.

At 12:40 pm, the S&P BSE IPO index was down 3.7 per cent, as compared to 1.6 per cent decline in the S&P BSE Sensex. Fino Payments Bank, SJS Enterprises, Krishna Institute of Medical Sciences (KIMS), PB Fintech (the parent company of Policybazaar), Ami Organics, Zomato and Sansera Engineering from the BSE IPO index were down between 6 per cent and 19 per cent in the intra-day trade today.

Individually, shares of One97 Communications (Paytm) tanked 19 per cent to Rs 1,271 on the BSE, extending its 27 per cent decline on Thursday. With today's fall, the stock has fallen 41 per cent against its issue price of Rs 2,150 as investors remain cautious on the company's lofty valuation and remain skeptical about its business model.

Paytm is India's leading digital ecosystem for consumers and merchants. The company offers consumers & merchants, technology-led, easy-to-use digital product and services as well as easy and inclusive access to financial service. The company has a huge customer base with strong brand positioning and it has an early mover advantage in digital payment services however it is still a loss-making company and very aggressively priced therefore we saw a tepid response in terms of subscriptions.

Those of Fino Payments Bank, too, dipped 19 per cent to Rs 366 on the BSE in the intra-day trade today. The stock continued to trade lower for the fifth straight day. The stock had debuted on November 12, 2021, and is down 37 per cent from its issue price. Fino Payments Bank is a fintech company offering a diverse range of financial products and services that are primarily digital and have a payments focus.

Besides Fino Payments Bank and SJS Enterprises, total seven recently listed IPOs were trading at their lowest level since their respective listing dates. The list includes, Aditya Birla Sun Life Assets Management Company, Cartrade Tech, Chemcon Speciality Chemicals, Shyam Metalics and Energy and Windlas Biotech.

	Price in Rs		%	Date of
Company	IPO	Latest	Chg	Listing
Paytm	2150	1333.2	-38.0	NOV 18,2021
Fino Payments Bank	577	396.9	-31.2	NOV 12,2021
SJS Enterprises	542	429.7	-20.7	NOV 15,2021
Sapphire Foods	1180	1165.3	-1.3	NOV 18,2021
PB Fintech	980	1234.5	26.0	NOV 15,2021
FSN E-Commerce	1125	2101.1	86.8	NOV 10,2021
Sigachi Industries	163	543.6	233.5	NOV 15,2021
*Latest price on BSE at 01:15 pm