IPO Story 2009 : Retail Investors are loosers

by khalid on 27/12/2009 · 0 comments

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 :

CompanyListing DateIssue Price (Rs) CMP (Rs)Gain/Loss (%)
Edserv Soft2nd Mar 09 60226.95 278.25
Thinksoft Global 6th Oct 09 125307.25 145.80
Mahindra Resorts16th Jul 09 300 461.3553.78
Cox & Kings 11th Dec 09 330 438.1532.77
Jindal Cotex 22nd Sep 09 7596.1 28.13
Oil India Ltd.30th Sep 09 1050 1253.119.34
Astec Lifesciences25th Nov 09 8282.05 0.06
Adani Power 20th Aug 0910098.65 -1.35
Den Networks24th Nov 09195192.15 -1.46
Globus Spirits 23rd Sep 09 100 95.95 -4.05
NHPC Ltd.1st Sep 093634.2 -5.00
Pipavav Shipyard 9th Oct 09 58 53.25-8.19
Indiabulls Power 30th Oct 09 4533.3 -26.00
Excel Infoways 3rd Aug 09 8556.8-33.18
Raj Oil Mills 12th Aug 0912072.05-39.96
Rishabhdev Techno29th Jun 093317.9-45.76
Euro Multivision 15th Oct 09 7529.9 -60.13
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