scorecardresearchZomato crosses its IPO price: A list of new-age stocks trading below their

Zomato crosses its IPO price: A list of new-age stocks trading below their issue price

Updated: 09 Jun 2023, 04:28 PM IST

CarTrade Tech's stock is down 66.66% from its issue price despite a recent surge. Similarly, Paytm's shares have rebounded, yet they trade 63% lower compared to the IPO price. PB Fintech and Delhivery also remain below their IPO prices.

Shares of FSN E-Commerce Ventures (Nykaa) are also currently trading 26.8% below their IPO price.

Shares of FSN E-Commerce Ventures (Nykaa) are also currently trading 26.8% below their IPO price.

New-age tech stocks have bounced back strongly in the current year after their poor show last year (CY22). Zomato, a leading food delivery major, has been particularly noteworthy in this regard. The company's shares have exhibited a remarkable recovery in CY23 so far, with a gain of 31%.

This rally stands in stark contrast to the stock's weak performance in CY22 when it lost 57% of its value. From March 28, the stock witnessed a one-way rally to mark a new 52-week high of 77.40 apiece in today's trade, resulting in a 58% gain.

With this solid turnaround, the food delivery major also crossed its IPO price of 76 apiece in the previous trading session after nearly one year, outshining many other recently listed stocks.

In this context, let us look at some other major new-age tech stocks that are still struggling to trade above their issue price.

CarTrade Tech

Investors who bought shares of this multi-channel auto platform provider company during its IPO for 1,618 per share and remained invested to date, have seen their wealth eroding sharply.

Even after the recent surge of 29.5% to 539.35 in the last six trading sessions, the stock is still down by 66.66% from its issue price.

CarTrade Tech made its debut on the stock exchanges on August 20, 2021, raising 2,998 crore through a complete offer for sale.


Following a steep decline of 60% in CY22, which positioned Paytm as the worst performer in the Nifty 100 Index, the company's shares have experienced a remarkable recovery this year.

In the current year so far, the stock rallied from 531 apiece to 799, resulting in a stellar return of 50.5%. Notably, between February 3 and 9, the stock experienced a staggering surge of 34.50% after the company's Q3FY23 losses narrowed to 392 crore from 778.4 crore in the same period last year.

The company even demonstrated improved performance in the March-ending quarter, significantly reducing its losses to 168 crore compared to 762 crore in the corresponding quarter of the previous year.

Despite this recent turnaround, the stock is still trading 63% below its IPO price of 2,150.

PB Fintech

PB Fintech, the parent company of PolicyBazaar and PaisaBazaar, experienced a strong rally this year but is still trading below its IPO price. In CY22, the company's shares suffered a 53% decline, but they have rebounded with a 37.60% return in the current year so far.

The recent surge in the stock price can be attributed to the company's improved performance in the third and fourth quarters of FY23. During Q3, the company managed to narrow its losses to 87 crore, followed by a further reduction to 9.34 crore in Q4.

Although the stock has recently shown signs of recovery, it is still trading at a 37% discount to its issue price price of 980.


Delhivery, a logistics service provider, has seen a modest 6.38% increase in its stock price, reaching 352 per share, year-to-date. The company's shares were listed on the exchanges on May 24, 2022, at 495.2, slightly above the issue price of 487. This IPO was the second-largest in CY22, following LIC.

After its market debut, the stock initially dropped below its issue price but quickly recovered, reaching a record high of 708.45 in June. However, the stock couldn't sustain its upward momentum and fell below its issue price for the second time on October 20.

Since then, the stock experienced a continuous downward trend and at current levels, it is down 28% when compared to its IPO price.


Similarly, FSN E-Commerce Ventures (Nykaa) shares are also currently trading 26.8% below their IPO price. However, brokerages turned bullish on the stock following the company's Q4 performance.

Global brokerage firm JM Financial initiated a 'buy' call on the stock with a target price of 230 apiece, which indicates an upside of 30% from the stock's current market price.



An IPO is the process by which a private company can go public by offering its stock to the general public for the first time.
First Published: 09 Jun 2023, 04:28 PM IST