The mandatory lock-up for pre-IPO investors in these 14 motherboard companies, listed in November-December 2021, will expire for the rest of 2022.
The list includes startups and traditional businesses from financial services, industrial mining, specialty chemicals, pharmaceuticals, real estate.
The listed entities include new companies such as FSN E-Commerce Ventures (Nykaa),
(), (), and,,,, Tarson Products,,,, Supriya Lifesciences and HP Adhesives.
These companies have accumulated around Rs 44,760 from the primary market during this period, of which Paytm (Rs 18,300) is the largest, while Sigachi and HP Glue (Rs 130 each) are small. most of them.
Source: Nuvama Wealth Management
On the listing front, not many stocks benefited investors as issues like Paytm and Shriram Properties fell 27% and 16% respectively at the end of the first day. However, Sigachi was up 296% and Nykaa was up 96% in their first day.
In terms of overall returns to date, Fino Payments Bank, PB Fintech and Paytm are all down 60%-70% from the issue price. On the other hand, Go Fashions and Sigachi Industries are trading 93% and 63% respectively, higher on their issue prices.
Half a dozen companies – Nykaa, Fino Payments, PB Fintech, Paytm, Sigachi Industries and
– are trading more than 50% off their 52-week high, while just two names – Sapphire Foods and Go Fashions – are up more than 50% from their 52-week lows.
Brokers and market analysts have mixed views on these stocks, but most of them have buy ratings from one brokerage firm or another.
Abhilash Pagaria, Head of Quantitative & Alternative Research, Nuvama Wealth Management, said most stocks will continue to come under pressure over the next few weeks.
He added: “A lot of pre-IPO investors, who have entered these names at a much lower level, will be looking to split a share of the shares once the lock is open. “We recommend investors buy the incredible Nykaa and Sapphire because we see value in them.”
Global brokerage Goldman Sachs maintains a ‘buy’ rating on Paytm with a target price of Rs 1,100. The September quarter numbers were better than expected, on both the topline and EBITDA.
“The global investment bank raised its estimate for Paytm following the results. It sees consistent improvement in profitability as an important catalyst,” it added.
On Nykaa, Dolat Capital has a buy rating with a target price of Rs 1,420, while HDFC Securities has started covering the stock with a ‘sell’ rating and a target price of Rs 800.
Wealth Research has recommended buying SJS Enterprises with a target price of Rs 590, while Emkay Global pegged Sapphire Foods at Rs 1,650 with a buy rating. has buy ratings on both PB Fintech and Go Fashion (India) with target prices of Rs 550 and Rs 1,600 respectively, while the broker has a hold rating on Tarson Products with a target price of Rs 755.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by experts are their own. These recommendations do not represent the views of The Economic Times)