Tuesday was a bad day for IPO investors in the Indian stock market. The IPO of this logistics and transportation company opened with a 20 percent discount from its issue price.

Indian Stock Market IPO: Tuesday was a losing day for IPO investors in the Indian stock market. Dhillon Freight, a company involved in the logistics and transportation business, listed on the stock exchange. However, the company's shares listed at a 20 percent discount from their IPO issue price. Subsequent selling of the company's shares began, and the stock hit a lower circuit, resulting in significant losses for investors. The company's shares fell by 24 percent.   

The company lost its strength immediately after listing

Investors were dealt a severe blow on Tuesday when the company launched its shares on the BSE. The company had set an issue price of ₹72 per share for its IPO. However, it had a disastrous debut, listing at ₹57.6. As a result, those allotted shares suffered a loss of approximately 20 percent per share upon market opening.

Following this, the company's shares fell further. Heavy selling caused the company to fall another 5 percent. The company's shares began trading at its lower circuit of ₹54.72, resulting in a loss of approximately 24 percent for investors. However, market experts believed this was not surprising. Prior to the listing, there was not much enthusiasm for the company's shares in the gray market, which was expected to lead to a weak start for the company. 

The confidence of small investors has been shattered.

Small and retail investors expressed confidence in purchasing the company's shares. Large investors stayed away from the IPO, and their shares were not fully subscribed.

Learn what the company does?

Dhillon Freight Carriers is a transportation company that operates freight services. The company operates in West Bengal, Bihar, Delhi, and Uttar Pradesh. The company has a fleet of vehicles and 22 offices from which it operates its business.