The market may be scaling new peaks but the ICE (information, communication and entertainment) stocks, floated in the "boom" period of 1999-2000, are in a comatose state. Stocks of most of the companies floated at that time are trading at a huge discount to their issue prices.
The loss for the investors of ICE stocks has been anything between three per cent and 97 per cent. The investors have lost over Rs 736 crore (Rs 7.36 billion) on the Rs 1,218-crore (Rs 12.18 billion) worth of investment made in 29 public issues during the period. The aggregate market value of these 29 companies declined by over 60 per cent over the last five years to Rs 482 crore (Rs 4.82 billion).
The prominent IPOs, which have not been able to keep pace with markets, are iGate Global Solutions, Polaris Software, Kale Consultants from the information technology sector, Mukta Arts, Tips Industries, Cinevistaas, Pritish Nandy Communications, Creative Eye and Padmalya Telefilms from the entertainment sector. These companies collectively mobilised over Rs 1,000 crore (Rs 10 billion).
Vision Organics has been the biggest loser among the 29 IPOs. Its stock price plummeted by 97 per cent to Rs 1.15 compared with its offer price of Rs 40 per share. The company had raised Rs 17.40 crore (Rs 174 million) through its IPO in 2000.
Investors in iGate Global Solutions have lost Rs 74 crore (Rs 740 million) over their investment of Rs 144 crore (Rs 1.44 billion). iGate stocks are currently trading at Rs 228.15, down 52 per cent over its IPO price of Rs 480 per share.
The Polaris Software stock is down 42 per cent to Rs 121.80 from its issue price of Rs 210 per share. Kale Consultants stocks declined by 24 per cent to Rs 91.10 compared with its offer price of Rs 120 per share.
Investors lost Rs 71 crore (Rs 710 million) in Mukta Arts, Rs 84 crore (Rs 840 million) in Tips Industries and Rs 66 crore (Rs 660 million) in Cinevistaas, Rs 69 crore (Rs 690 million) in Shree Rama Multitech, Rs 39 crore (Rs 390 million) in Ajanta Pharma and Rs 44 crore (Rs 440 million) in PNB Gilts.
Film director Subhash Ghai's Mukta Arts share price declined by 68 per from its issue price of Rs 165 per share.
The price of Cinevistaas is down 87 per cent over its IPO at a price of Rs 300 per share. Tips Industries' share value has declined 85 per cent over its offer price of Rs 325 per share.
