Shares of Logistics Unicorn Delhivery fall over 15% 473.50 on Thursday following its latest guidance on moderate growth in shipment volumes during the rest of the fiscal year.
The company’s share price violated the issue price of its initial public offering (IPO) 487 per share for the second time after the Gurugram-based startup debuted on the stock exchange.
In its quarterly business update to its shareholders, Delhivery shared concerns over “high levels of inflation, average user spend and total active buyers staying flat or low during the ongoing festive season”.
It further said that volumes at our Supply Chain Services and Truckload (TL) businesses declined quarter-on-quarter in the three months ended September 30, 2022, due to the “expected impact of the season” on its customers’ businesses. .
Delhivery, India’s largest fully integrated logistics services company, was raised by 5,235 crore in its IPO in May. The issue was subscribed 1.63 times. It is listed on the National Stock Exchange with a premium of 2% along with the price of 495.2.
The company’s shares have fallen 11.8% since then. It said it is monitoring market sentiment.
Other tech stocks – including Paytm, Zomato, Nykaa, PB Fintech – which went public last year have also had a tough week in the stock market so far. Despite gains in the benchmark indices Nifty and Sensex, the shares of most of these companies have declined.
While the shares of Paytm, Zomato and PB Fintech have already fallen below the issue price, Nykaa is trading dangerously close to the issue price.
Share price of FSN E-commerce Ventures Ltd, which operates beauty and fashion marketplace Nykaa, hits lowest point 1130.85 since starting trading in November. Its shares traded slightly above the issue price of 1125, before the expiry of November 10, of a lock-in period of one year for its pre-IPO shareholders.
However, the stock climbed 0.85% to end the day on Thursday 1162.10 Everyone, a sigh of relief to the investors.
Overall, Nykaa’s share price is down more than 36 percent in the past six months, and is down 4.8% in the past five days of trading. Stock is down 54.8% from its all-time high 2,573.70.
Nykaa made a strong market debut in October last year when the company’s stock was priced at Rs. 2,001 per share on the Bombay Stock Exchange (BSE).
For the first quarter of fiscal year 2023, Nykaa reported a net profit of 4.5 crore, an increase of 32.4% over the same period last year. On the other hand, the company’s revenue grew 40.6% year-over-year 1,148.4 crores.
ICICI Securities in its August 2022 note said, “…we believe that success will not be easy as Nykaa is not the cheapest place for beauty and personal care products nor does Nykaa address the issue of authenticity. Is.”
It also said that “chasing growth at higher levels can reduce gross margins and make success in the fashion business difficult given the high competition in the category as potential risks”.
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