Zomato, Nykaa, Other Big IPO Winners See Stock Price Crash
NDTV
Indias new stock listings are losing their edge as a worsening outlook for global equities leads investors to take profit from high-profile consumer technology stocks that debuted with inflated valuations.
India's new stock listings are losing their edge as a worsening outlook for global equities leads investors to take profit from high-profile consumer technology stocks that debuted with inflated valuations.
The S&P BSE IPO Index, which tracks firms for two years since their listing, has plunged about 10% since the start of the year and is headed for its worst month since March 2020 when the pandemic took hold.
The slump comes on the back of fading risk appetite for equities as global central banks prepare to tighten monetary policy to quell inflation. In the U.S., more than two-thirds of shares that listed this year are trading at or below their starting prices.
“Easy money will no longer be available, in turn impacting future fund-raising” for Indian companies, said Rupen Rajguru, head of equity investment and strategy at Julius Baer Wealth Advisors India Pvt.
