Financial Daily from THE HINDU group of publications
Thursday, May 25, 2006


News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Home Page - IPOs
Markets - Stock Markets


Many IPO stocks reel under double-whammy

R.Y. Narayanan

Coimbatore , May 24

With the stock markets suffering a double whammy — a black Monday followed by a bleak Wednesday, the year 2006 does not seem to be a great year to the investors, who had put their money in the IPOs floated since January 2006, hoping to ride piggy back on the secondary market boom.

According to the data available on NSE's Web site, out of the 34 companies whose shares were listed for trading in the exchange since January 2006, including some of the follow-on public issue shares, a good number of them are trading at a discount to the offer price.

Though after Monday's market meltdown some had recovered part of the lost ground on Tuesday, the hope was short lived with many of them being bruised again on Wednesday.

Success stories

But there are also success stories of stocks that have been left unscathed at a time when the Sensex had fallen by close to 2,000 points in the last fortnight.

It is true that many of them have come down from their peak since listing but they are still quoting higher than the offer price even at a time when the market seems to be in a bear hug.

Among the shares that have put up a standout show is B.L. Kashyap & Sons Ltd. The company's shares, which were offered at Rs 685 per share in the February 2006 public issue, closed at Rs 1227.15 on Wednesday.

Sadbhav Engineering was another stock that was left untouched by the double whammy. As against the issue price of Rs 185, the share closed at Rs 385.45 today.

No investor would complain about more than 100 per cent gain in three months from a stock when the market had actually crashed from its historic high.

Prathiba Industries Ltd was another stock to give more than a 100 per cent return in three months — the share price closed at Rs 250.65 against the issue price of Rs 120.

Among the others, DS Kulkarni Developers posted a moderate return of Rs 280.95 (Rs 275), while Union Bank of India Rs 107.10 (Rs 110) and Andhra Bank Rs 71.15 (Rs 90) finished in discount to the issue price.

More Stories on : IPOs | Stock Markets

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Monsoon onset window extended to next six days


EPFO awaits norms to invest in equity markets
DoT asks Tatas to put EVDO plans on hold
Dishman to buy Swiss co Solutia's unit
Reliance eyes cane processing
A different process
Maran for extension of STP scheme
Q1 Indian retail investment in gold up
Sensex sheds 250 points
FIIs vs MFs on the Sensex front
FIIs record $1.13 b sales in May
Few takers
Many IPO stocks reel under double-whammy



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line