Nykaa stock was listed in November of last year, and it has dropped more than 52% since then.

Shares of FSN E-Commerce Ventures, the parent company of cosmetics-to-fashion retailer Nykaa, fell as much as 2% to 1,120 on the BSE in early trading on Tuesday, falling below their IPO issue price of 1,125. Meanwhile, another new age stock, Delhivery, was trading near its 52-week low of 377, much lower than its issue price of 487.

Nykaa stock was listed in November of last year, and it has dropped more than 52% since then. Nykaa’s IPO received 81.78 percent subscription, primarily due to strong interest from institutional investors. The offer price range was $1,085-1,125 per share. Delhivery, India’s largest fully-integrated logistics services provider, raised Rs 5,235 crore in its initial public offering (IPO) in May. The issue received 1.63 subscriptions.

Delhivery expressed concerns about “high levels of inflation, with average user spends and total active shoppers remaining flat or lower during the ongoing festive season” in its quarterly business update to shareholders.

Other tech stocks that went public last year, such as Paytm, Zomato, Nykaa, and PB Fintech, have had difficult months on the stock market and have already fallen below their issue price.

Deepak Shenoy of CapitalMind tweeted on Tuesday, “Delhivery, Nykaa, and PolicyBazaar are falling in terms of stock price for only one reason, I believe.” After Lockins opens, there will be a massive supply. Even Zomato had a scare earlier this year, which resulted in massive sales. This will have an impact on all IPOs with large pre-IPO investors.”

“For IPOs that were last November, lockin was a year. For IPOs earlier this year it was 6 months. Essentially once lockins open (Nov) then many of the pre-ipo investors will want to sell. Some *have* to sell,” he added.

Earlier this month, Nykaa announced that its board of directors had approved the issuance of bonus equity shares in the ratio of 1:5, implying that the company will issue 5 shares for every 1 share held as of the record date. The company has set Thursday, November 3, 2022 as the record date for determining members who are eligible for Bonus equity shares.