A newly-listed IPO has only seen lower circuits since its trading debut

Shares of Amir Chand Jagdish Kumar Exports Ltd., known for their "Aeroplane Rice" a premium basmati rice brand, has had a forgettable welcome to Dalal Street so far, with the stock having already dropped nearly 40% from its issue price in just four trading sessions.

The stock of the rice exporting company made its stock market debut last Thursday, on April 2. Shares listed at a discount compared to its IPO price of ₹212 and have only declined since then.

Trading was halted on the day of the stock listing, as it fell 15% from its issue price before closing. The next three sessions, the stock has only seen 10% lower circuits right from the onset.

At the close of trading on Wednesday, the stock was down to ₹131.12, a 38% drop from its issue price in just four trading sessions.

1.75 crore shares of the company were traded on the day of its listing, while Wednesday's 10% lower circuit came on volumes of close to 62 lakh shares.

As per the company's Red Herring Prospectus (RHP) filed with market regulator Securities and Exchange Board of India (SEBI), the company derived 22% of its overall topline for the first nine months of the financial year 2025 from the West Asia region, currently in the middle of war between the US, Israel and Iran, with a temporary ceasefire announced on Wednesday.

"A significant fluctuation in the Indian Rupee to the US Dollar or other foreign currency exchange rates could materially and adversely affect our business, results of operations, cash flows and financial conditions," the company's offer document stated, adding that they hedge their assets and liabilities against exchange rate movements by entering forward exchange contracts, cross-currency swaps and interest rate swaps.

65% of the company's topline for the same period highlighted above, came from the Indian markets.

Amir Chand Jagdish Kumar's IPO was a ₹440 crore issue and it was entirely a fresh issue of equity shares with no Offer for Sale (OFS) from existing investors.

The three-day issue was led by subscription from non-institutional investors (NIIs), who subscribed to 13.35 times the total number of shares reserved for them. The portion reserved for institutional investors and retail investors just about managed to see full subscription. Overall subscription for the IPO stood at 3.23 times.