By Admin 
Indian Stock Market IPO: Tuesday was a very bad day for IPO investors in the Indian stock market. Dhillon Freight Carriers, a company involved in the business of logistics and transportation, got listed in the stock market, but its shares were listed with a decline of 20 percent from its IPO issue price. Even after this, the company’s shares continued to fall and lower circuit was imposed on the stock. Due to which investors had to suffer huge losses. Also the shares of the company fell by 24 percent.
The company lost its strength immediately after listing
On Tuesday’s trading day, when the company launched its shares on the SME platform of BSE, investors got a big shock. The company had kept the issue price of its IPO at Rs 72 per share. But its start in the market was very poor and it was listed at Rs 57.6. Due to which the investors who were allotted shares of the company had to suffer a loss of about 20 percent per share as soon as the market opened.
After this, an even further decline was seen in the company’s shares. Due to heavy selling, the company’s shares fell further by 5 percent and started trading at its lower circuit at Rs 54.72. Due to which investors had to suffer a loss of about 24 percent in a few hours. However, according to market experts, there was nothing surprising in this. Before the listing, there was not much enthusiasm about the company’s shares in the gray market. Due to which the company was expected to have a weak start.
Small investors lost confidence
Small and retail investors had expressed confidence in purchasing company shares. Investors had given mixed reactions to the small IPO of Rs 10.08 crore. The portion reserved for retail investors received bids up to 4.87 times. Which shows that the retail investor had shown his willingness to invest in the company. However, big investors had kept distance from this IPO, and their shares could not be fully subscribed.
Know what the company does
Dhillon Freight Carriers is a transportation company, which deals in freight transportation. Talking about the business of the company, it provides its services in West Bengal, Bihar, Delhi and Uttar Pradesh. The company has its own fleet of vehicles and 22 offices. From where the company runs its business.
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