Weak IPO listings by Studds and Orkla cast a shadow on market euphoria

Consecutive weak listings by Studds Accessories and Orkla India have dimmed India's IPO frenzy, even as analysts flag valuation concerns and a cooling in grey market sentiment

Back-to-back weak listings have taken some shine off India’s ongoing IPO boom. On Friday, shares of helmet maker Studds Accessories ended 5 percent below their issue price, a day after food company Orkla India closed 3 per cent lower on debut. The subdued market response came despite strong investor demand during their maiden offerings — Studds’ IPO was subscribed over 70 times and Orkla’s over 50 times. 

Grey market sentiment also weakened. The premium for Lenskart Solutions slipped sharply, from above 20 per cent to below 2 per cent, while that for Groww, which closed its issue on Friday, and