LIC, Delhivery disappoint IPO investors, emerge as worst performers

A fistful of mega IPOs that deed the marketplace successful 2022 could not present capitalist money. Some of the issues specified arsenic AGS Transact, Delhivery and Life Insurance Company (LIC) successful information eroded a large chunk of capitalist worth successful the different a forgettable twelvemonth for secondary marketplace investors. 

Rich valuations and involvement complaint hikes globally weighed connected capitalist sentiment, said analysts who are cautiously optimistic implicit 2023 prospects.

AGS Transact Technologies was the worst performing IPO of 2022, arsenic the banal tumbled astir 65 per cent to Rs 64 connected Thursday, December 29, implicit its contented terms of Rs 175. The archetypal contented of 2022 ran from January 19 and January 21.

Delhivery erased one-third of investors wealth. The banal had settled astatine Rs 332 connected Thursday,  down from its contented terms of Rs 487.  The Rs 5,235 crore contented was opened for subscription betwixt May 11 and May 13.

The largest IPO ever, LIC, besides turned retired to beryllium a large disappointment for investors. The banal stood astatine Rs 684, 28 per cent beneath its contented terms of Rs 949 apiece.

The authorities of India sold 3.5 per cent involvement of the security behemoth to rise astir Rs 21,000 crore betwixt May 4 and May 9. The company, which was valued astatine Rs 6.06 lakh crore has wiped retired much than Rs 1.73 lakh crore from its marketplace capitalisation.

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Despite being the astir awaited contented for 2022, LIC was the biggest disappointment for the year, said Kranthi Bathini, Equity Strategist, Wealthmills Securities. "The way successful tech-based net companies jolted the sentiments further and turned investors cautious."

Uma Exports, Abans Holdings, Inox Green Energy, Dharmaj Crop Guard, Landmark Cars, Sula Vineyards and Keystone Realtors were different wealthiness destroyers for the superior market. These stocks fell up to 30 per cent implicit their contented prices.

Analysts tracking the superior marketplace said that the companies raising funds via superior way are apt to support the valuations tenable and permission thing connected the array for investors.

"The caller issues were richly priced and, thus, received a acold enarthrosis from the investors. Some evenstruggled to sail through," said Vinit Bolinjkar, Head of Research, Ventura Securities.

In 2023, the valuations request to beryllium much realistic, helium said, adding that wealth volition travel if the interests of investors are served well."

Bathini is besides cautiously optimistic connected the superior markets for the twelvemonth 2023 and sees valuations moderating from the highest levels. "The loss-making players request to beryllium much watchful of the valuations," helium said.