New Edge Tech Stocks: All-round beating has started again for the shares of tech companies which made a splash in the market through their IPOs. Stocks like Paytm, Zomato, Nykaa, Delhivery and Policybazaar have been witnessing a sudden fall in the recent past, due to which the investors investing in the IPOs of these companies have to bear the brunt. In 2021, these companies raised $ 18 billion through IPOs, but investors have suffered huge losses on investing in these tech stocks. Shares of these tech companies have fallen by more than 75 percent from their all-time high.
The fall in the stock of food delivery company Zomato is increasing. The share with issue price of Rs 76 is now trading at Rs 51. The stock has fallen by 31 per cent in the last 3 months. After listing in 2021, the stock touched a high of Rs 169. Zomato’s market cap was Rs 1 lakh crore on the day of listing on July 23, 2021, which is now only Rs 43,613 crore.
Nykaa did the damage
Nykaa’s stock has declined by 43 per cent in the last three months. On November 11, 2022, the stock was trading at Rs 224, which is now trading at Rs 128. The market cap was Rs 1.04 lakh crore on the day of listing in the stock market, which has now come down to Rs 36,742 crore. Nykaa had issued an IPO at a rate of Rs 1125 per share. The company had issued five bonus shares for one share, due to which the share rate has changed.
Paytm’s stock is not recovering
Paytm is in worst condition. The issue price of Paytm was Rs 2150, which is now trading around Rs 531. Paytm has come down 75 percent from its issue price. So the market capitalization has come down from Rs 1,39,000 crore to Rs 34525 crore. That means Rs 1.05 lakh crore of investors have sunk.
Below PolicyBazaar IPO Price
The issue price of Policy Bazaar was Rs 980, which is now trading at Rs 445, which means the stock is trading 55% below the IPO price. The IPO was listed on the exchange on November 15 in 2021 and then its market cap was Rs 54,070 crore. Now it has come down to Rs 20,030 crore.
Loss to Delhivery’s investors
Logistics company Delhivery brought IPO at the rate of Rs 487 per share. But now it is trading at Rs.307. Delhivery is trading around 37 per cent below its issue price. The pre-IPO valuation of the company was Rs 35,283 crore, which has come down to Rs 22,399 crore.
The dilemma in front of these tech-based companies is that most of the companies are running in losses due to which the attitude of brokerage houses towards these stocks is very negative. In such a situation, there is no sign of any boom in these stocks at the moment.
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