(1)Food delivery major Zomato,
(2)Digital payments company Paytm,
(3)e-Commerce player Nykaa
The NIFTY Next 50 is an Indian share market index which represents 50 companies from NIFTY 100 after excluding the NIFTY 50 companies.
Zomato’s stock has fallen around 7% during trade, closing at Rs 78. This is less than half of its record-breaking debut on the stock exchange when it touched an all-time high of Rs 169.10.
Shares of Paytm plunged 5% to an all-time low of Rs 780 on the BSE. According to the recent numbers, the stock was trading 60% below its all-time high of Rs 1,961.05. Paytm’s market capitalization fell to Rs 50,798 crore at the close of intraday trade.
Nykaa also dropped more than 4%, closing at Rs 1,312.95 at the end of intraday trading on the BSE. As a result, the beauty retailer’s market capitalization has plunged to Rs 61,658 crore on 24 February 2022.
Nykaa, Zomato, Paytm IPOs
Nykaa and Zomato increased investor wealth with a stellar debut on the bourses, Paytm listed on a discount of 30%. However, Nykaa and Zomato both have been falling this year with the latter’s shares dropping 42%. Nykaa’s shares declined 36%.These three Zomato, Paytm, Nykaa brought out their IPOs in 2021 and garnered huge investor attention and were included in Nifty Next 50 leading to inflows of $33 million, $11 million and $9 million, respectively.
Their inclusion in the Nifty Next 50 comes after the Index Maintenance Sub-Committee — Equity (IMSC) of the National Stock Exchange(NSE). They decided to improve by making fine adjustments to the eligibility criteria of the Nifty equity indices and said that the constituents should have a minimum listing history of one calendar month as on the cut-off date vs earlier requirement of 3 months. The revised list of Nifty Next 50 will be effective from March 31, 2022, and along with Zomato, One97 Communications (Paytm), FSN E-Commerce Ventures (Nykaa), it also includes SRF, Indian Oil and Mindtree which may see inflows of $47 million, $40 million and $33 million, respectively.
A few other stocks in various indices have also been reshuffled as part of its periodic review on 24th February 2022. IOC excluded and Apollo Hospitals included. RBL excluded and Bank of Baroda included. In the Nifty Midcap100 index, ABB India, Clean Science, IDBI Bank, IEX, Max Health, PB Fintech, Trident and Yes Bank are among the new inclusions. The stocks making an exit would be Ajanta Pharma, Castrol India, City Union Bank, Hindustan Copper, IRFC, Pfizer.