IPO Story 2009 : Retail Investors are loosers
This year (2009) there were around 19 IPOs (Initial Public Offer) came to raise money from public and they sold shares worth about Rs 20000 crore to the public shareholders. . For a great surprise public is the looser, measured in terms of change in the value of shares from the time of allotment in IPO to their current market prices. Promoters walked away with a lion’s share in this market during 2009.
Now most of the retail investors named this IPO term in theire own way, like ‘Initial Promoter Offer’, ‘Idiotic Pricing Offer’ and even ‘It’s Probably Overpriced.’ Shares of nearly two-third of the companies that came out with IPO this year are currently trading below their public offer prices, resulting into losses for those who purchased shares.
There is a common perception among retail investors that corporates in connivance with merchant bankers are overpricing the offers in their lust for big money.
Below is the list of IPOs performance :
| Company | Listing Date | Issue Price (Rs) | CMP (Rs) | Gain/Loss (%) |
|---|---|---|---|---|
| Edserv Soft | 2nd Mar 09 | 60 | 226.95 | 278.25 |
| Thinksoft Global | 6th Oct 09 | 125 | 307.25 | 145.80 |
| Mahindra Resorts | 16th Jul 09 | 300 | 461.35 | 53.78 |
| Cox & Kings | 11th Dec 09 | 330 | 438.15 | 32.77 |
| Jindal Cotex | 22nd Sep 09 | 75 | 96.1 | 28.13 |
| Oil India Ltd. | 30th Sep 09 | 1050 | 1253.1 | 19.34 |
| Astec Lifesciences | 25th Nov 09 | 82 | 82.05 | 0.06 |
| Adani Power | 20th Aug 09 | 100 | 98.65 | -1.35 |
| Den Networks | 24th Nov 09 | 195 | 192.15 | -1.46 |
| Globus Spirits | 23rd Sep 09 | 100 | 95.95 | -4.05 |
| NHPC Ltd. | 1st Sep 09 | 36 | 34.2 | -5.00 |
| Pipavav Shipyard | 9th Oct 09 | 58 | 53.25 | -8.19 |
| Indiabulls Power | 30th Oct 09 | 45 | 33.3 | -26.00 |
| Excel Infoways | 3rd Aug 09 | 85 | 56.8 | -33.18 |
| Raj Oil Mills | 12th Aug 09 | 120 | 72.05 | -39.96 |
| Rishabhdev Techno | 29th Jun 09 | 33 | 17.9 | -45.76 |
| Euro Multivision | 15th Oct 09 | 75 | 29.9 | -60.13 |
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