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Key Points

The Indian stock market has witnessed a dramatic downturn for recent IPOs, with BMW Ventures, Om Freight, and Glottis experiencing severe stock price declines. Despite healthy initial subscription numbers, these companies have seen their share prices drop between 35-40% shortly after listing. The trend reflects a challenging market environment for new public offerings. Investors are now cautious about the performance of recently listed stocks.

Key Points: IPO Shock BMW Ventures Om Freight Glottis Stocks Crash

  • IPOs of BMW Ventures, Om Freight, and Glottis suffer steep declines
  • Stocks plunge between 35-40% within days of listing
  • Retail investors face significant losses despite initial enthusiasm
  • Market sentiment turns negative for recent public offerings
2 min read

BMW Ventures, Om Freight, Glottis IPOs sink after listing; stocks crash up to 40 pc

Three newly listed companies BMW Ventures, Om Freight, and Glottis see massive stock price drops up to 40% after market debut

"Nearly two-thirds of recent IPOs are trading below their issue prices - Market Analysis Report"

Mumbai, Oct 9

Investor excitement over recent IPOs has quickly turned into disappointment as newly listed stocks -- BMW Ventures, Om Freight Forwarders, and Glottis Limited -- have seen steep declines soon after debut.

Despite healthy subscription numbers, all three companies have suffered heavy losses on Dalal Street, with their shares plunging between 35 and 40 per cent within days of listing.

Om Freight Forwarders Limited made its market debut on October 8, but the excitement quickly faded.

The stock was listed at a 39 per cent discount against its issue price of Rs 135 per share and ended the day 36 per cent lower.

The Rs 122 crore IPO had received good investor response, being subscribed nearly four times overall, with retail investors subscribing more than twice their allotted quota.

Glottis Limited's debut was no better. The stock, which listed a day before Om Freight, opened 35 per cent below its issue price of Rs 129 per share and ended the first day deep in the red.

Although there was a brief recovery on the second day, selling pressure soon returned, dragging the stock back to flat levels.

The IPO was subscribed 2.05 times, with the retail portion getting 1.42 times subscription.

BMW Ventures Limited also disappointed investors with a weak market debut last week. The stock was priced at Rs 99 per share but opened at a 25 per cent discount.

Since then, it has remained under heavy selling pressure, hitting lower circuits in four consecutive sessions.

By Wednesday, the stock was down nearly 40 per cent from its issue price. The IPO was subscribed 1.5 times overall, though the retail portion failed to get fully subscribed.

In the past 13 trading sessions, more than 20 companies have listed on the stock exchanges.

However, nearly two-thirds of them are now trading below their issue prices.

- IANS

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Reader Comments

R
Rohit P
Lost 30k in BMW Ventures IPO. Feeling really disappointed. SEBI should be more strict about companies coming for IPO with unrealistic valuations. Retail investors like us suffer the most.
A
Arjun K
The subscription numbers were misleading. Retail investors subscribed heavily but the companies didn't have strong fundamentals. This is a lesson for all of us - do proper research before investing.
S
Sarah B
As someone new to Indian markets, I'm shocked by these IPO performances. In developed markets, such massive listing day crashes are rare. The regulatory framework needs to protect small investors better.
V
Vikram M
IPO market is becoming like gambling. Companies are taking advantage of the bull market sentiment to list at inflated prices. Retail investors should focus on established blue-chip stocks instead.
K
Kavya N
My father always said "IPO matlab I Pay Only" 😂. Jokes aside, this is really worrying for the market sentiment. Hope investors learn from this and become more cautious.

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