Mumbai, Oct 9 Investor excitement over recent IPOs has quickly turned into disappointment as newly listed stocks -- BMW Ventures, Om Freight Forwarders, and Glottis Limited -- have seen steep declines soon after debut.
Despite healthy subscription numbers, all three companies have suffered heavy losses on Dalal Street, with their shares plunging between 35 and 40 per cent within days of listing.
Om Freight Forwarders Limited made its market debut on October 8, but the excitement quickly faded.
The stock was listed at a 39 per cent discount against its issue price of Rs 135 per share and ended the day 36 per cent lower.
The Rs 122 crore IPO had received good investor response, being subscribed nearly four times overall, with retail investors subscribing more than twice their allotted quota.
Glottis Limited’s debut was no better. The stock, which listed a day before Om Freight, opened 35 per cent below its issue price of Rs 129 per share and ended the first day deep in the red.
Although there was a brief recovery on the second day, selling pressure soon returned, dragging the stock back to flat levels.
The IPO was subscribed 2.05 times, with the retail portion getting 1.42 times subscription.
BMW Ventures Limited also disappointed investors with a weak market debut last week. The stock was priced at Rs 99 per share but opened at a 25 per cent discount.
Since then, it has remained under heavy selling pressure, hitting lower circuits in four consecutive sessions.
In the past 13 trading sessions, more than 20 companies have listed on the stock exchanges.
However, nearly two-thirds of them are now trading below their issue prices.
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