Swiggy, Sagility India, ACME Solar Holdings & Niva Bupa Health Insurance IPO Stock Performance Analysis 10 Days

This report offers an in-depth analysis of the performance of recently listed IPOs, focusing on stock price trends during the first ten days post-listing. It delves into quarterly results and evaluates sectoral performance to provide investors with valuable insights into the market dynamics of these new entrants. Additionally, the analysis highlights the key factors influencing their stock price movements and overall performance.

IPO Stock Performance Overview

In the past ten days, newly listed IPOs such as Swiggy, Sagility India, ACME Solar Holdings, and Niva Bupa Health Insurance have delivered varied performances, shaped by market conditions, investor sentiment, and sector-specific drivers. Each stock debuted with differing levels of demand and interest across investor categories, reflecting the unique dynamics of their respective industries. While Swiggy, Sagility India and Niva Bupa were listed above their premium prices, ACME Solar Holdings was listed at a significant discount from its issue size.

Key Factors Impacting these Stocks

The IPO stocks under review have been influenced by varying factors, including:

• Sector-specific trends: Each company's industry has impacted investor sentiment.
• Subscription Rates: Interest across QIBs, retail investors, employees, and HNIs.
• Market Sentiment: Broader market conditions and investor confidence in each company shaped their post-listing performance.
• Growth Potential: Investors’ expectations of long-term growth and profitability were critical in determining price stability and trends.

Individual Stock Analysis

Niva Bupa Health Insurance

• Listing Date: November 14, 2024
• Initial Price: ₹78.50 (6.08% premium over the issue price of ₹74)
• Current Price: ₹74.00 (down by 5.73% over the listing price)

Market Reaction: Niva Bupa Health Insurance IPO demonstrated modest demand, being oversubscribed 1.90 times, with retail investors leading at 2.88 times, followed by QIBs at 2.17 times and NIIs at 0.71 times. By the 10th day post-listing, Niva Bupa Health Insurance share price traded nearly steadily, fluctuating slightly between ₹73 and ₹74 before settling at ₹74.00.

Financial Performance: The company saw impressive growth in FY2024, with revenue rising by 44.05% to ₹4,118.63 crore, up from ₹2,859.24 crore in FY2023. Profit After Tax (PAT) experienced a substantial increase, reaching ₹81.85 crore in FY2024, compared to ₹12.54 crore in the previous year, highlighting a strong improvement in profitability.

Sagility India

• Listing Date: November 12, 2024
• Initial Price: ₹31.06 (3.53% premium over the issue price of ₹30)
• Current Price: ₹28.27 (down by 8.98% over the listing price)

Market Reaction: Sagility India made a modest debut, with its pricing signaling a healthy but cautious optimism. The IPO garnered strong interest, being oversubscribed by 3.20 times, led by retail investors at 4.16 times, followed by QIBs at 3.52 times, and NIIs at 1.93 times. The employee portion also saw robust participation, with a subscription rate of 3.75 times. By the 10th day post-listing, the Sagility India share price traded at ₹28.27, reflecting a slight decline from its listing price.

Financial Performance: The company reported solid financial growth, with revenue increasing by 13% to ₹4,781.50 crore in FY2024, up from ₹4,236.06 crore in FY2023. Profit After Tax (PAT) saw a significant rise of 59%, reaching ₹228.27 crore in FY2024 compared to ₹143.57 crore in the previous year.

Swiggy Limited

• Listing Date: November 13, 2024
• Initial Price: ₹412 (5.64% premium over the issue price of ₹390)
• Current Price: ₹433 (up by 5.10% over the listing price)

Market Reaction: Swiggy’s IPO was among the most anticipated, thanks to its dominance in food delivery and quick commerce. Despite concerns about high competition and profitability pressures, the stock debuted at a healthy premium. Over the past ten days, its performance has been stable, with marginal gains, indicating cautious optimism from investors. Its oversubscription rate of 3.59x, led by institutional demand, reinforced confidence in its market leadership.

Financial Performance: Swiggy Limited reported a 34% increase in revenue, reaching ₹11,634.35 crore in FY2024, up from ₹8,714.45 crore in FY2023. At the same time, the company managed to reduce its losses significantly, with the loss narrowing to ₹2,350.24 crore in FY2024, compared to ₹4,179.31 crore in the previous year, indicating progress in improving financial performance.

ACME Solar Holdings

• Listing Date: November 13, 2024
• Initial Price: ₹251 (13.15% discount to the issue price of ₹289)
• Current Price: ₹257.85 (up by % over the listing price)

Market Reaction: ACME Solar faced a disappointing start, listing at a steep discount, reflecting investor skepticism. However, the ACME Solar Holdings stocks demonstrated resilience, recovering significantly over ten days to near its issue price. Subscription rates of 2.89x, led by institutional investors, suggested moderate demand. The renewable energy sector's strategic importance lent support to its gradual recovery.

Financial Results: The company experienced a 7.71% increase in revenue, which grew to ₹1,466.27 crore in FY2024, up from ₹1,361.37 crore in FY2023. Additionally, Profit After Tax (PAT) saw a remarkable turnaround, rising to ₹697.78 crore in FY2024, compared to a loss of ₹3.17 crore in the previous year, reflecting a significant improvement in profitability.

Comparison and Trends

The post-listing performance analysis of the four IPOs reveals varying investor reactions, though most of them performed well, with distinct trends based on sectoral dynamics. Niva Bupa and Swiggy emerged as strong starters, showing consistent growth and steady upward movement, reflecting positive investor sentiment in the health insurance and food delivery sectors, respectively. Sagility India, a more gradual gainer, demonstrated steady growth, which positions it for long-term success. Meanwhile, ACME Solar, despite a weak debut, showed resilient recovery, with sectoral tailwinds in the renewable energy space helping to offset its initial challenges. 

Conclusion

The IPO performance of Swiggy, Sagility India, ACME Solar, and Niva Bupa over ten days highlights varying market reactions, shaped by industry dynamics and company fundamentals. While Niva Bupa and Swiggy have displayed stable growth, Sagility India and ACME Solar are gradually gaining investor confidence. As these companies continue to execute their growth strategies, their stock performance will be closely watched, offering valuable insights into emerging market trends.