Mumbai: National Stock Exchange (NSE) shares remained below their IPO price despite a rebound on Tuesday, less than two weeks after listing. The reversal has erased the stock’s initial gains, with the reported loss in investor wealth reaching nearly Rs 41,000 crore from its peak.
The stock rose Rs 26.35, or 1.53 per cent, to Rs 1,749.85 on Tuesday. However, it remained below the issue price of Rs 1,785, leaving IPO investors facing losses despite the recovery.
Early Gains Fade
NSE made its stock market debut on the BSE on September 24 at Rs 1,800 per share, a premium of less than 1 per cent over its IPO price.
Buying strengthened during the opening hour, pushing the stock more than 5 per cent higher to an intraday peak of Rs 1,878. At that price, the exchange’s market capitalisation reached around Rs 4.64 lakh crore.
The early enthusiasm did not last. Selling pressure in subsequent sessions pulled the stock below both its listing price and its IPO price, reversing the gains seen on debut.
Shares Hit Listing Low
On Monday, NSE shares fell to Rs 1,712, their lowest level since listing. This placed the stock nearly 9 per cent below its debut-day peak and about 4 per cent below the IPO price.
Tuesday’s rise offered some relief, but the shares still traded around 7 per cent below their peak. The recovery was also insufficient to restore the value of investments made at the issue price.
Market Ranking Slips
NSE’s market value was reported at around Rs 4.27 lakh crore, pushing it outside India’s top 10 most valuable listed companies and into 12th place.
Also read: Sensex Rises 244 Points, Nifty Tops 23,200 As Markets Rebound
Companies ranked ahead included Reliance Industries, Bharti Airtel, HDFC Bank, ICICI Bank, State Bank of India, TCS, Bajaj Finance, Larsen & Toubro, LIC, Hindustan Unilever and Sun Pharma.
Broader Markets Rally
The rebound coincided with a strong session for Indian equities as investors bought pharma, private banking and oil and gas stocks ahead of the RBI’s policy decision.
The Sensex gained 685.34 points to 73,067.81, while the Nifty rose 220.35 points to 22,776.10 on the domestic stock exchanges.
