Chemplast listed at Rs 525 on BSE, a 2.96% discount to its issue price of Rs 541. Aptus Value listed at Rs 330, which was 6.5% lower than the IPO price of Rs 353.
Brokers said the drop in mid-cap and small-cap stocks have dented IPO market sentiment and made debutants look expensive. Currently, seven out of the 10 IPOs listed in August are trading below their offer price. While Windlas Biotech ended 25% below their offer price on Tuesday, Glenmark Life Science and Krsnaa Diagnostics are trading at a 6% discount to their IPO price. Nuvoco Vistas and CarTrade Tech ended 8% and 2% lower to their issue price, respectively on Tuesday.
“Despite a decent subscription, the listing was tepid following high valuations and a weak market,” said Vinod Nair, head of research, Geojit Financial Services. “Investors are also side-lining lenders with high exposure in the rural markets due to fear of slippage.”
The Rs 3,850-crore public offering of Chemplast Sanmar got subscribed 2.17 times early this month. The quota reserved for qualified institutional buyers was subscribed 2.70 times, non-institutional investors’ 1.03 times, and retail investors’ 2.29 times. Analysts were largely cautious about the company’s prospects due to high debt, and negative net worth while shares were sold at 21 times its adjusted FY21 EPS of Rs 26.
The Rs 2,780-crore IPO of Aptus Value was subscribed 17.20 times. The institutional category was subscribed 32.41 times, shares for rich investors received bids for 33.91 times. The retail quota was subscribed 1.35 times.