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.
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, 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.