The year 2018 has remained volatile for the markets which affected the prospects of the IPOs hitting the Dalal Street during the period. Among 16 major firms hitting the primary market this year, 10 of them are trading below their listed price.
These firms' market value has taken a hit due to lack of interest from retail investors, qualified institutional investors, and anchor investors keeping participation in the issue to the minimum.
Most of the funds that have been raised during the period under review were for business expansion plans, repayment of loans and to support working capital requirements.
Further, many companies opted the IPO route to give exit to their existing shareholders such as private equity and venture capital firms. By taking the IPO route, companies achieve the benefits of listing the equity shares on the bourses, which enhances their brand name.
The largest IPO by issue size was that of Bandhan Bank (Rs 4,473 crore) followed by Hindustan Aeronautics (Rs 4,229 crore), ICICI Securities (Rs 3,515 crore), Varroc Engineering (Rs 1,955 crore), IndoStar Capital Finance (Rs 1,844 crore) and Lemon Tree Hotels (Rs 1,040 crore). Here's a look at how these firms have performed after they made their stock market debuts this year.