Tale of the Tape 

Hello, everyone. The market of stocks got smoked!!! 

Nifty (-1.3%) and Sensex (-1.2%) collapsed over a percent each despite opening higher. Increasing geopolitical tensions in the Middle East plus the uncertainty ahead of the US elections spooked investors. Midcaps (-2.6%) and Smallcaps got absolutely KO-ed (-3.9%). A whopping 481 stocks in the NSE 500 ended in the red. 

Not a single sector ended higher! PSU Banks (-4.2%), Real Estate (-3.4%) and Metals (-3%) were the top losers.

Hyundai India’s mega IPO was a flop. With more big listings on the horizon, read our top story on why massive IPOs usually fail.

Paytm cracked -6% after a disappointing Q2. On the other hand, City Union Bank was the top NSE 500 gainer after a solid earnings show. More details below.

Garden Reach Shipbuilders, Mazagon Dock and Amber Enterprises were the top NSE 500 losers today. Check out their charts below.

Ambuja Cements (-2%) will acquire Orient Cement for Rs 8,100 cr.

Results reaction. Jana Small Finance Bank fell -10% after a -21% YoY decline in net profit. Meanwhile, Bajaj Housing Finance was flat after its bottomline jumped +21% YoY.

PNC Infratech fell another -7% today, its second day of losses after being blacklisted by the GOI.

IPO update. Waaree Energies IPO got oversubscribed 9x. Deepak Builders & Engineers IPO received 12x more bids on day 2. 

Sona BLW Precision Forgings has started production at its new plant in Haryana for its driveline biz.

Here are the closing prints:

Stock
History Repeats Itself!

India’s biggest-ever IPO turned out to be a disappointment. Hyundai Motor India closed at Rs 1,820 p/sh; down -7% from its IPO. There are a lot of different reasons why this happened, but tbh most of India’s massive listings have been a mixed bag. With other big IPOs on the horizon (Swiggy, NTPC Green Energy etc), here’s a quick look at how past debuts have gone.

1) LIC: The previous biggie, with an IPO size of Rs 21,000 cr. The stock ended its listing day down -8% from its issue price. Over two years later, it's STILL down -4%  from its offer price of Rs 949 p/sh.

2) Paytm: The mother of all overvaluations. The stock crashed -27% on its market debut after investors raised red flags over its losses. It currently trades at Rs 699 p/sh; a whopping -67% lower than its  issue price of Rs 2,150 p/sh.

3) Coal India: A strong PSU IPO which gave investors a cool +40% in listing gains. FYI - the stock has nearly doubled since 2010 (so decent returns, but not great).

4) GIC: The state-backed insurer had a weak market debut, ending listing day down -5% from its IPO price. The stock has been a big wealth destroyed, having fallen -59% in the last seven years from its issue price of Rs 912 p/sh. 

5) SBI Cards: The credit card issuer launched its IPO just before the Covid lockdown hit. But that didn’t help it too much, ending with a -10% listing day loss. PS - the stock currently trades at Rs 705 p/sh; -7% below its issue price.

TL;DR: Be wary when it comes to massive IPOs, you may get a Coal India here and then. But more often than not, IPO bankers are way too greedy.

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