Hindustan Aeronautics, Lemon Tree cap weak quarter for IPO investors

5 of 9 stocks trading below their issue price; retail investors give IPOs a miss

The weak listing of state-owned Hindustan Aeronautics (HAL) and tepid demand for the Rs 10-billion initial public offering (IPO) of mid-segment hotel company Lemon Tree Hotels capped a disappointing quarter for primary market investors.

Shares of the aerospace company closed 7 per cent below its IPO price, while Lemon Tree’s offering scarped with barely any subscription from retail and high net worth investors (HNIs).

HAL joins five other stocks, listed in the January-March period, whose shares are currently trading below or near their issue price. The average returns for the nine IPOs listed in this quarter are a paltry 2 per cent.

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