Nykaa shares below IPO issue price; Delhivery trading near 52 week low

nayaka share Listed in November last year, the stock has lost over 52% since its market debut. Nykaa’s IPO was subscribed at 81.78, mainly helped by huge interest from institutional investors. The price range for the offer was 1,085-1,125 per share. 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.

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”.

Other tech stocks including Paytm, Zomato, Nykaa, PB Fintech- which went public last year have had tough months in the stock market so far and have already fallen below the issue price.

In a tweet on Tuesday, Deepak Shenoy of CapitalMind explained the fall in these stocks saying, “I think Delhi, Nykaa and Policy markets are falling in terms of stock price only because of one reason. The supply is coming. Even Zomato saw huge selloff earlier this year. This will affect all the IPOs in which the big IPOs were pre-investors.”

“Last November for the IPO, lockin was a year. IPO Earlier this year it was 6 months. Inevitably once the lockins open (Nov) many pre-IPO investors will want to sell. Some have to *sell*,” he said.

Earlier this month, Nykaa announced that its board has approved the issuance of bonus equity shares of the company in the ratio of 1:5, i.e. the company will issue a bonus of 5 shares for every 1 share as on the record date . The Company has fixed Thursday, November 03, 2022, as the record date for the purpose of determining the eligible members for Bonus Equity Shares.