Swiggy, FirstCry among FY25's marquee IPOs trading in the red
What's the story
The high-profile IPOs of FY25 have all underperformed, barring Hyundai, trading below their listing prices. The fall in these stocks has been steep, up to 42%. FirstCry, Ola Electric, Bajaj Housing Finance, NTPC Green Energy, Swiggy, Vishal Mega Mart, and Waaree Energies have all raised over ₹4,000 crore through their public offerings.
Hyundai's success
Hyundai's IPO stands out
Hyundai's IPO was India's biggest ever, raising a whopping ₹27,870 crore. The company's shares debuted at ₹1,820 and are currently trading a tad above that price at ₹2,050. Despite taking a hit for most of the year due to market conditions, Hyundai managed to stage a comeback in late March.
Market hurdles
Ola Electric and Bajaj Housing Finance face problems
Ola Electric, the leader in India's tech-driven electric vehicle space, has witnessed its stock decline nearly 32% from the offer price and 38% from the listing price. The company had raised a little over ₹6,000 crore through its IPO. Likewise, Bajaj Housing Finance's stocks are down nearly 19% from their debut day levels after witnessing record-breaking demand at the time of its IPO.
Additional declines
Other marquee IPOs also face market challenges
Other marquee IPOs including NTPC Green Energy, FirstCry, Vishal Mega Mart, Waaree Energies, and Swiggy have also witnessed their stocks fall from the issue price. For example, NTPC Green is now down 10% from its listing price while FirstCry has fallen by as much as 42%. Swiggy's stocks are also firmly in red with a fall of 20% from its debut day.
Future predictions
Analysts predict shift in IPO dynamics for next fiscal year
As we head into the next fiscal year, several big names are likely to tap public markets through their IPOs. These include Zepto, Ather Energy, LG Electronics, Reliance Jio, NSE, and HDB Financial Services among others. However, analysts predict a shift in the IPO dynamics, with companies now needing to price their issues according to fundamentals and growth expectations rather than lofty valuations.