Newly listed stocks trade way below their record highs


A record number of initial public offerings were completed in 2021. The sell-off has now been triggered, and as a result, many listed unicorns, such as Nykaa, Zomato, Paytm, and Policybazaar, have seen a massive decline in their valuation. This is because the prices of newly listed stocks have plunged to levels that are significantly lower than their respective highs. In addition to several other new businesses, such as MapmyIndia, CarTrade, and Nazara Technologies, Delhivery is one of the companies that has recently completed its Initial Public Offering (IPOs).

Nykaa Shares of FSN E-Commerce Ventures Ltd, the parent company of Nykaa, have decreased by nearly 37 per cent since its listing in November of last year, amidst the broader market mayhem, which has weighed more heavily on stocks of technology companies as interest rates are set to inch up across the world. The listing of Nykaa occurred in November of last year. Despite this, Nykaa shares have seen more than 28 per cent since its initial public offering price of 1,125 rupees each. When Nykaa, a beauty retail company created by the entrepreneur Falguni Nayar, listed its initial public offering (IPO) in 2021, it caused a sensation in the market. It had a successful beginning, but the current price of Nykaa’s shares is just 1,425, a reduction of around 45 per cent from the record high price it reached earlier.


The first public offering (IPO) of the food aggregator Zomato was also a success, as it was subscribed for 38.25 times. Zomato’s share price has fallen to its current level of 54.50 rupees, representing a decline of about 68 per cent from its all-time high of 169 rupees. The cost of Zomato common stock has dropped by more than 57 per cent in 2022 (YTD).


One 97 Communications Ltd, Paytm’s parent company, raised $2.5 billion in its initial public offering (IPO). Still, the company’s debut on November 18, 2021, saw a drop of 27 per cent, making it one of the worst initial showings by a significant technology firm since the dot-com bubble era of the late 1990s. Paytm is an Indian mobile payment service that allows users to send and receive money with their phones. The stock’s current price is down by 65% from its all-time high.

The online insurance service firm Policybazaar, owned by PB Fintech, has listed on the BSE at a premium of 17.35%. The highest point it ever achieved was 1,470. However, just like the other companies, this one has seen a decrease in share price, and it is currently trading at a level below sixty per cent of where it was at its all-time high. Similarly, shares of MapMyIndia (CE Info Systems) and CarTrade have fallen by approximately 30 per cent and 67 per cent, respectively, from their respective record highs.

Follow and connect with us on Facebook, LinkedIn & Twitter.


Please enter your comment!
Please enter your name here