Over 60% new entrants sink below IPO price so far in 2016

New Delhi: More than half of the new entrants to the stock market this year are trading well below their IPO price, giving negative returns of as much as 31 percent.

Out of the six companies that have launched their IPOs this year, four are still trading below the price at which they had issued shares to the investors, an analysis of the performance of these firms showed.

The rest two companies have managed to make gains by staying above their issue price.

Quick Heal Technologies which got listed in February has taken the steepest hit as its shares have slumped 31 percent against its IPO price.

In the case of Precision Camshafts, the first public offering of 2016, its shares have fallen by over 17 percent.

Similarly, shares of HealthCare Global Enterprises tumbled 12.5 percent and that of Bharat Wire Ropes have lost more than one percent.

In contrast, Infibeam Incorporation and TeamLease Services have managed to stay afloat even as the broader market sentiment remained weak.

Infibeam, which got listed earlier this month is trading way above its IPO price, surging 17.5 percent.

TeamLease shares have also risen by almost 3 percent from its issue price.

Besides, Equitas Holdings which completed its IPO earlier this month is yet to make its stock market debut.

The BSE benchmark Sensex has witnessed a fall of 491 points or 1.87 percent so far this year. The index hit its 52-week low of 22,494.61 on February 29, 2016.