These stocks flopped
As this year passed, many popular and big valuation IPOs came into the stock market. He was discussed a lot. Some made huge profits for investors through explosive listings and collapsed within a few days or rather within a week. For example, recently the IPOs of Grow, Lenskart and Physics Wala were listed in the market, out of which Grow and Physics Wala reached the market with great listing gains. But now the situation of both these shares has worsened. If we talk only about GRO, it has fallen by about 18 percent in the last two days. Besides, decline is also being seen in Physicswall and Lenskart.
Grow’s IPO
When Grow’s IPO was listed in the market. Since then there has been tremendous growth in it. But its shares fell by about 18 percent in the last two trading days i.e. Wednesday and Thursday. It fell as much as 9% to its daily low of Rs 154 on the BSE on Thursday as investors continued booking profits and traders shorted new stocks amid high valuations. With today’s fall, the stock is down 18% in just 2 sessions.
Groww is already valued at around 34 to 44x FY25 earnings, which is a clear premium to Angel One’s 20x and Anand Rathi’s 25x. With the market capitalization now at over Rs 1 lakh crore compared to around Rs 61,000 crore during the IPO, the valuation gap has widened sharply. Ishan Tanna of Ashika Institutional Equity Research had earlier told The Economic Times that the stock was showing a pullback. He points out that when stocks worth Rs 25,000 crore like Angel One and stocks like Motilal Oswal worth Rs 59,000 crore are trading at very low multiples, it is clear that the market has set these prices keeping in mind many years of hyper growth.
physicswala share price
Physicswala shares were listed on NSE on November 18 at Rs 145 per share, a premium of more than 33 percent over the IPO price. At the end of the first day, the stock rose further to close at Rs 156.49 per share, which was about 44 percent more than its IPO price.
However, the stock’s momentum slowed down on the second day. Physicswala shares fell by more than 8 percent and closed at Rs 142.20 per share. The stock is still up more than 30 percent from its IPO price of Rs 109 per share, but it is lower than its listing price.
lenskart share price
At the same time, after a lot of discussion, Lenskart’s name is among the lagging stocks. Shares of Lenskart Solutions were listed weakly in the market on November 10, at about 3% discount from its IPO price of Rs 390 per share on BSE. On NSE, the shares were listed at Rs 395 per share with about 2 per cent discount.
After hitting the market, the stock jumped nearly 11 per cent to a high of Rs 438.85 per share on November 17 on the NSE. Then on November 18, the stock fell by more than 1.5 percent and on November 19, it fell further by 4 percent and was trading at Rs 409.30 per share. After trading in deep red earlier in the day, Lenskart shares shrugged off all losses to close more than 1 per cent higher at Rs 429 per share.