Paytm’s stock is not the only one that didn’t make the premium listing cut and ended on a negative note despite having an IPO size of more than Rs 1,000 crore. Here's a look at the worst IPOs of all time
Paytm’s initial public offering—India’s largest till date—failed to live up to expectations on listing day, with the shares closing 27 percent below the issue price of Rs 2150.
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But this is not the first time, that high profile IPOs have been cold shouldered by investors on listing day.
In 2008, the street was in a frenzy over Reliance Power’s Rs 10,123 crore IPO. The widely held view among investors was that the shares would list at twice the issue price if not more. A large number of demat accounts were opened by retail investors, who were convinced there was easy money to be made from the IPO. The hype over the Reliance Power IPO was similar to what new-age firms are seeing today.
The issue was subscribed 72 times, leading many to think that the listing would be at a huge premium because of the pent up demand from investors who did not get any allotment, or far fewer shares than what they had bid for.
But that was not to be. The shares opened at a slight premium but immediately plunged after that. The stock closed at Rs 372, 17 percent lower its issue price. It never came anywhere near its issue price in all these years.
In November 2015, Coffee Day Enterprises came out with a Rs 1,150 crore issue, which was subscribed 1.81 times. The shares dropped over 17 percent on listing day.
The Rs 4,017-crore ICICI Securities IPO too got a poor response from investors in April 2018 as the issue saw only 78 percent subscription on the final day of the bidding process. However, including anchor allotment, the issue received a total of 87.9 percent bids.
Post undersubscription, the company cut its IPO size to Rs 3,500 crore, and priced the shares at Rs 520 apiece.
Also Read: Paytm's Vijay Shekhar Sharma says today's share price not a true reflection of co's scale
Despite anchor investors picking up close to a third of the shares on offer, ICICI Securities listed at a 16 percent discount and eventually closed the day 14 percent below the issue price.
In March this year, Kalyan Jewellers raised Rs 1,175 crore through an IPO. The issue was subscribed 2.61 times led by retail investors who bid for 2.82 times the shares on offer. The QIBs portion was subscribed 2.76 times, according to exchange data. However, the company’s shares listed 15 percent below its issue price and closed more than 13 percent lower.
Cairn India, Bharti Infratel, ICICI Prudential Life Insurance, Jaypee Infratech and Indiabulls Power are among the other top worst debuts by IPOs with a size of Rs 1000 crore and above.
Here’s a list of the 10 worst mega IPOs of all time
|SNO.||COMPANY||OFFERPRICE(Rs.)||ISSUEAMOUNT(Rs.crore)||LISTINGDATE||CLOSE PRICEON LISTING||% LOSS|
|1||COFFEE DAY ENTERPRISES LTD.||328.00||1,150.00||02-11-2015||270.15||-17.64|
|2||RELIANCE POWER LTD.||450.00||10,123.20||11-02-2008||372.50||-17.22|
|3||ICICI SECURITIES LTD.||520.00||3,480.12||04-04-2018||445.05||-14.41|
|4||CAIRN INDIA LTD.||160.00||5,788.79||09-01-2007||137.50||-14.06|
|5||UTI ASSET MANAGEMENT CO.LTD.||554.00||2,159.88||12-10-2020||476.60||-13.97|
|6||KALYAN JEWELLERS INDIA LTD.||87.00||1,174.82||26-03-2021||75.30||-13.45|
|7||BHARTI INFRATEL LTD.||220.00||4,172.76||28-12-2012||191.20||-13.09|
|8||INDIABULLS POWER LTD.||45.00||1,758.15||30-10-2009||39.25||-12.78|
|9||ICICI PRUDENTIAL LIFE INSURANCE CO.LTD.||334.00||6,056.79||29-09-2016||297.65||-10.88|
|10||JAYPEE INFRATECH LTD.||102.00||2,257.61||21-05-2010||91.30||-10.49|
Data by primedatabse.com
(Edited by : Santosh Nair)
First Published: Nov 19, 2021 10:58 AM IST