23 IPOs hit lowest level since listing; 13 fall below issue price

Credo Brands Marketing, ASK Automotive, Flair Writing Industries, Rishabh Instruments, and TVS Supply Chain Solutions fell below their issue prices

One in three recently listed main board initial public offers (IPOs) hit lowest level since their market debut on Wednesday, amid a sharp sell-off in mid, small, and micro-cap stocks.

As many as 23 IPOs, including Happy Forgings, Valiant Laboratories, Cello World, Gandhar Oil Refinery (India), Mukka Proteins, and Aeroflex Industries, were quoting at their lowest level since listing, BSE data showed.

Of these 23, Credo Brands Marketing, ASK Automotive, Flair Writing Industries, Rishabh Instruments, and TVS Supply Chain Solutions were among the 13 IPOs which are currently trading below their respective issue prices as well.

At 10:33 am, the S&P BSE IPO index was down 3 per cent as compared to 0.02 per cent decline in the S&P BSE Sensex. The S&P BSE Midcap and S&P BSE Smallcap indices, too, slipped 1.9 per cent and 2.8 per cent, respectively.

In the past three days, the BSE IPO index has tanked 8 per cent, while it has plunged 14 per cent from its record high level of 14,377 touched on February 2, 2024.

Meanwhile, the S&P BSE SME IPO index slipped nearly 4 per cent in intraday trade today. In the past three days, the index has tanked 11 per cent, while it has corrected 17 per cent from its record high level touched on February 26.

Market regulator Securities and Exchange Board of India (Sebi) is increasing scrutiny of issue documents filed by companies going public amid a rise in IPO.

The Sebi has observed signs of manipulation at both the trading and issuance levels in the small and mid-size enterprise (SME) space. Sebi Chairperson Madhabi Puri Buch said on Monday that the market watchdog is working to introduce more disclosures to safeguard investors.

Sebi is scrutinising several instances of inflated subscriptions, noting a 'misuse' of the SME route, Business Standard reported quoting sources.

"The principal objective is to mitigate the risk of price manipulation... The first step is additional disclosures concerning risk factors. Investors need to understand that the SME segment differs from the mainboard; regulations and risks are distinct," said Buch. READ MORE