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Investors have started losing money in initial public offerings of companies as seven stocks are now trading below their issue prices. They are: Jet Airways, HT Media, Provogue (India), Vishal Exports, Nectar Lifesciences, Shri Ramrupai Balaji Steels and Uniply Industries.
The biggest loser, Uniply Industries, has seen its price declining by 25.42 per cent to Rs 17.90 against its issue price of Rs 24. Vishal Exports, the second biggest loser, was down 21.78 per cent to Rs 7.04 today compared with its issue price of Rs 9 per share of Re 1. Nectar Lifesciences was quoted at Rs 195.7 against an issue price of Rs 240 per share, down 18.46 per cent.
HT Media declined 17.5 per cent to Rs 437.05 over its issue price of Rs 530. Shri Ramrupai Balaji Steels was down 17.50 per cent at Rs 18.15 over its issue price of Rs 22, while Provogue (India) lost 4.83 per cent at Rs 142.75 against its issue price of Rs 150. Jet Airways was down 1.95 per cent at Rs 1078.55 against its issue price of Rs 1100.
Thirty-two IPOs that have hit the capital market in the first 10 months of calendar year 2005 have collectively seen an erosion of market value worth Rs 3,682 crore after their listing on the bourses.
Of the 32 IPOs that have been listed during the year at high premiums, 20 are trading between 2 per cent and 50 per cent below their listing prices. The aggregate market value of these 32 firms at Rs 14,098 crore has declined 21 per cent from their listing value of Rs 17,780 crore. These companies have raised Rs 9,817 crore through IPOs.
The gains of as many as 20 companies, listed at high premiums in the current calendar year, have been clipped. The market prices of Vivimed Labs, Uniply Industries, FCS Software, SPL Ind, Sasken, Amar Remedies and Gokaldas Exports are down between 20 and 50 per cent over their listing prices.
Vivimed Labs is down 50 per cent at Rs 107.85 against its listing price of Rs 218.35. The company's IPO was priced at Rs 70 per share. FCS Software, that got listed at 258 per cent premium (Rs 179.10) over its issue price of Rs 50 a share, is down 39 per cent to its listing price.
Infrastructure Development Finance Company, Amar Remedies, Sasken Communications, Cyber Media and Indoco Remedies were listed at more than 60 per cent premium over their issue prices. All of them were trading below their listing prices on Friday.
Sasken Communications is down 28.8 per cent at Rs 330.90 against the listing price of Rs 464.55; Gokaldas Exports is down 17 per cent to Rs 523.35 (Rs 630.45); SPL Industries is down 24.7 per cent to Rs 78 (Rs 103.35) and Uniply Industries is down 40.2 per cent to Rs 17.90 (Rs 29.95).
