Skip to content
Valuation

The 90% “crash” that wasn’t!

Agarwal & Choksi July 15, 2026 2 min read

🚨 The 90% "crash" that wasn't! Lord's Mark Industries' listing on BSE on July 10, 2026, looked like a disaster, but it was a masterclass in market mechanics, not a business failure.

As a valuer, when I see headlines like "90% crash," my first thought is: what's the *real* story? Here, it's all about understanding reverse mergers and dilution. This isn't a traditional IPO, and the rules of engagement are different.

🔹 **Reverse Merger Magic:** Lord's Mark bypassed a traditional IPO, merging with an already listed shell company. Smart move for speed, but it comes with unique pricing dynamics.

🔹 **Massive Dilution:** The shell company had just 10 lakh shares. Post-merger, over 42.6 crore new shares were issued! That's a huge increase, and it fundamentally changes the per-share value.

🔹 **Unlisted Market vs. Reality:** Before listing, Lord's Mark shares traded in the unlisted market at speculative prices (₹88-₹230). The shell company's stock was also inflated due to low share count. The ₹63 listing price was the market's way of finding fair value after dilution.

🔹 **Real Business, Real Growth:** Despite the initial price adjustment, the company operates in diverse sectors like healthcare, diagnostics, and renewables. Their revenue surged to ₹685 Cr in FY26 with a PAT of ₹49 Cr.

What this means for you: Don't just react to headlines. Always dig deeper into the *how* and *why* behind market movements, especially with non-traditional listings. The "crash" was a mathematical adjustment, not a reflection of the company's underlying health.

How do you approach valuing companies that come to market via reverse mergers versus traditional IPOs?

#IndianCapitalMarkets #Valuation #ReverseMerger #StockMarketIndia #Finance

This article is for general information only and does not constitute professional advice. Please consult the firm for advice specific to your circumstances.

Discuss your requirement with a partner

Every engagement at Agarwal & Choksi is partner-led. Tell us about your business and we will advise on the right approach.