LIC, Delhivery among 8 firms that are trading below their issue price
These stocks have declined between 15 per cent and 68 per cent over their respective issue price
- Jul 27, 2023,
- Updated Jul 27, 2023 5:23 PM IST
Netweb Technologies made its stock market debut with an impressive premium of nearly 90 per cent on July 27. Similarly, during this month, Ideaforge Technology and Utkarsh Small Finance Bank also witnessed significant gains of over 50 per cent on listing. However, some investors are still waiting to see their investments in select newly listed companies that got listed since January 2022 surpass their respective issue prices.
Data highlighted that there are at least eight companies whose share prices are still trading below their respective issue price. This includes names like insurance behemoth Life Insurance Corporation of India (LIC) and logistics firm Delhivery.
Shares of LIC have declined over 33 per cent to Rs 630 on July 27 against the issue price of Rs 949. The scrip got listed at Rs 867.20. On the other hand, Delhivery traded at Rs 402.70 on July 27, down over 17 per cent, against the issue price of Rs 487. Shares of these companies made their stock market debut in May 2022.
LIC is a dominant force in India’s life insurance industry commanding a market share of 71.26 per cent and 62.58 per cent in policies and premiums respectively at the end of FY23. It also holds the distinction of managing the country’s largest assets under management (AUM) worth over Rs 40 lakh crore. AUM Capital earlier in May gave ‘Buy’ rating to LIC. The brokerage sees LIC’s shares at Rs 805 in the next 9-12 months.
On the other hand, ICICI direct recently gave ‘Buy’ rating to Delhivery with at target price of Rs 500, indicating an upside of 24 per cent against the current market price. Delhivery is the largest and fastest growing fully-integrated logistics player in India by revenues. It provides a full-range of logistics services, including express parcel, e-commerce delivery and heavy goods delivery, among others.
“Q4FY23 marked Delhivery returning to EBITDA breakeven and we expect positive momentum to continue going forward,” ICICI direct said in a report.
AGS Transact Technologies, which got listed in January 2022, traded nearly 68 per cent down at Rs 56.30 on Thursday against the issue price of Rs 175. It was followed by Uma Exports (down 16 per cent against the issue price) and Udayshivakumar Infra (down 15 per cent against the issue price). Shares of these companies got listed on BSE and NSE in April 2022.
Elin Electronics also declined nearly 41 per cent to Rs 146.30 on July 27 against the issue price of Rs 247. Dharmaj Corp Guard also traded nearly 28 per cent down at Rs 171 on July 27 against the issue price of Rs 237. Shares of these companies got listed in December last year.
Netweb Technologies made its stock market debut with an impressive premium of nearly 90 per cent on July 27. Similarly, during this month, Ideaforge Technology and Utkarsh Small Finance Bank also witnessed significant gains of over 50 per cent on listing. However, some investors are still waiting to see their investments in select newly listed companies that got listed since January 2022 surpass their respective issue prices.
Data highlighted that there are at least eight companies whose share prices are still trading below their respective issue price. This includes names like insurance behemoth Life Insurance Corporation of India (LIC) and logistics firm Delhivery.
Shares of LIC have declined over 33 per cent to Rs 630 on July 27 against the issue price of Rs 949. The scrip got listed at Rs 867.20. On the other hand, Delhivery traded at Rs 402.70 on July 27, down over 17 per cent, against the issue price of Rs 487. Shares of these companies made their stock market debut in May 2022.
LIC is a dominant force in India’s life insurance industry commanding a market share of 71.26 per cent and 62.58 per cent in policies and premiums respectively at the end of FY23. It also holds the distinction of managing the country’s largest assets under management (AUM) worth over Rs 40 lakh crore. AUM Capital earlier in May gave ‘Buy’ rating to LIC. The brokerage sees LIC’s shares at Rs 805 in the next 9-12 months.
On the other hand, ICICI direct recently gave ‘Buy’ rating to Delhivery with at target price of Rs 500, indicating an upside of 24 per cent against the current market price. Delhivery is the largest and fastest growing fully-integrated logistics player in India by revenues. It provides a full-range of logistics services, including express parcel, e-commerce delivery and heavy goods delivery, among others.
“Q4FY23 marked Delhivery returning to EBITDA breakeven and we expect positive momentum to continue going forward,” ICICI direct said in a report.
AGS Transact Technologies, which got listed in January 2022, traded nearly 68 per cent down at Rs 56.30 on Thursday against the issue price of Rs 175. It was followed by Uma Exports (down 16 per cent against the issue price) and Udayshivakumar Infra (down 15 per cent against the issue price). Shares of these companies got listed on BSE and NSE in April 2022.
Elin Electronics also declined nearly 41 per cent to Rs 146.30 on July 27 against the issue price of Rs 247. Dharmaj Corp Guard also traded nearly 28 per cent down at Rs 171 on July 27 against the issue price of Rs 237. Shares of these companies got listed in December last year.