of the four recently listed companies, CarTrade
Tech, Aptus Value Housing Finance
India, Krshna Diagnostics and Rolex Rings, hit fresh lows since their listings on the bourses on Tuesday. These stocks were down between 2 per cent and 4 per cent on the BSE in intra-day trade.
Tech, a company that operates online platforms for buying and selling of vehicles, hit a new low of Rs 1,365, down 4 per cent on the BSE. The company had debuted on August 20, 2021, and hs fallen 16 per cent below its issue price of Rs 1,618 per share.
Tech is a multi-channel auto platform provider company that operates various brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, and AutoBiz.
"The major disappointing factor from CarTrade was that its IPO was 100 per cent offer-for-sale (OFS), therefore, no money will go into business for future expansion while high competition and low entry barriers are other risk factors," said Santosh Meena, Head of Research at Swastika Investmart.
He, however, added that as the market is interested in new edge technology stocks whereas anchor book and HNIs subscription were decent for the CarTrade IPO, aggressive investors should hold this company for the long term.
of Krshna Diagnostics (KDL), meanwhile, were quoting lower for ninth straight trading day. The stock of the healthcare services provider hit a new low of Rs 768.45, down 4 per cent in intra-day trade today. It slipped 30 per cent from its 52-week high level of Rs 1,099.50, hit on its listing day (August 16, 2021). Currently, the stock is trading 19 per cent below its issue price of Rs 954 per share.
KDL offers a range of technology-enabled diagnostic services such as imaging (including radiology), pathology/clinical laboratory and tele-radiology services to public and private hospitals, medical colleges, and community health centres pan-India.
A substantial portion of the revenue from operations depends on payments under contracts with public health agencies. If KDL is unable to negotiate and retain similar fee arrangements, if the contracts are cancelled, or if it is unable to realize payments due to it, its business may be materially and adversely affected.
Most of KDL’s diagnostic centres have been established and are operated under public private partnership contracts awarded by government agencies through a competitive bidding process. There can be no assurance that KDL will qualify for, or that it will successfully compete and win such tenders, are among key concerns, according to HDFC Securities.
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