Performance of IPO in India

BSE Sensex

Source

Indian Share Market IPO Performance

Performance of Indian IPO’s

If we look at Indian stock market which is performing well and has doubled since its low in March 2009. From low 8325 it is trading at 18,512 now is more than doubled in last two years. Indian economy is growing at robust pace and performance of the economy is very good in last two years. But if we look at the performance of the IPO (Initial Public Offering) is really very bad.

If we look at the performance then almost 74% of total 222 listed from 2007 are trading below their issue price. Almost 27% of total issues lost more than 70% of their issue price and 16% lost their 80% and above. This performance is extremely bad and it is same over the years. 93% and above issues of 2010 are trading below their issue and some of them are performed really badly. The government entities are no exception to them.

If we look at why the performance of IPO is so bad, there are few notable points which comes to the forefront.

· The offer prices of these IPO’s are very aggressive and there is very little or no room is left for the short term appreciation of the share price. Some of the big companies has not done well on the stock market, MPSEZ,NTPC,NMDC and NHPC. Some of the IPO's has even lost up to 90% of their worth.

· The second most important point is the lead manager and under writer. If you get good lead manager and under writer and some hired analyst and paid media, it is done. The issue is over subscribed.

· The marketing is very important and network of broker plays key role in the sale of these IPO’s.

· Even though it was mandatory to get rating on IPO’s but rarely investor’s look at it and lead manager and under writer are the one who sale it.

· Those where the good old days when IPO pricing was approved by the ministry of company affairs and those were really good days when retail investor are protected from manipulation.

· Even though SEBI is very proactive in market but has so far fail to control this issue.

Total Issues 2007 till Date

Total No of Issues from 2007 ---- 219

Total No of Issues in Negative ----- 162

Percentage of Issues in Negative --- 74%

Total No of Issues in Positive --- 57

Percentage of Issues in Positive --- 26%

2011

Total No of Issues from 2011 --- 13

Total No of Issues in Negative --- 7

Percentage of Issues in Negative --- 54%

Total No of Issues in Positive --- 6

Percentage of Issues in Positive ---- 46%

2010

Total No of Issues from 2010 ---- 73

Total No of Issues in Negative --- 68

Percentage of Issues in Negative --- 93%

Total No of Issues in Positive --- 5

Percentage of Issues in Positive --- 7%

2009

Total No of Issues from 2009 ---- 17

Total No of Issues in Negative ---- 9

Percentage of Issues in Negative --- 53%

Total No of Issues in Positive ---- 8

Percentage of Issues in Positive ---- 47%

2008

Total No of Issues from 2008 ----- 45

Total No of Issues in Negative ---- 38

Percentage of Issues in Negative ---- 84%

Total No of Issues in Positive ----- 7

Percentage of Issues in Positive ------ 16%

2007

Total No of Issues from 2007 ----- 71

Total No of Issues in Negative ------ 54

Percentage of Issues in Negative ----- 76%

Total No of Issues in Positive ------ 17

Percentage of Issues in Positive ----- 24%

Indian IPO Market

Indian IPO
Indian IPO

Indian Stock Market - IPO and FPO Future Prospects

 Indian Stock Market IPO and FPO Future Prospects

Presently Indian Market is around  BSE Sensex 18500 and NSE Nifty around 5556.  They are hoving around this range for quite some time. The volatility is very high and will remain so in 2011-12 fiscal year. ( Fiscal year is from 1st April to 31st March).  The market will remain volatile and will be dependent upon global liquidity and market movements.  It will be range bound for 2011-12.

The real issue is the IPO and their performance. If IPO are doing badly why? When the market in general has done well. IPO should have done good. But IPO's are performing very badly. Is SEBI to be blame, rating agencies to be blame? Who is responsible for this. This is very difficult question to answer. I don't think any one answer this. What I can answer is " How IPO's will be doing in future." ( future IPO's)

The real problem with IPO's are pricing, very aggressive pricing is first and formost reason for the very bad performance of these IPO's. The pricing of the IPO's are based on current market fundamentals and ratio's, the numbers are for the future operations. This method of valueing IPO based on current market valuations and fundamentals does not leave any room for the further appreciation of the stock. It left the stock only one way, if anything goes wrong, very little down side of performance or negative news, newly listed stock goes down. The promoter has not left any room for the appreciation of stock and new investor, shareholder may benefit from it. The promoter has eaten up all cream and what is left is affered to the market like skimmed milk. Even though most of the IPO's are rated OK but no one really looks at rating. The market maker, lead manager, his broker and marketing network is what matters. If promoter has skills to get best lead manger then he is assured of sell and money. The under writter make money and so is the lead manager. Only investors loose money.

I do not see any fundamental change in this scenario and IPO will continue to perform badly on the stock market after listing.

 

IPO 2011 Performance

S NO
Company
List Date
List Price
Current Price
Issue Price
Change
1
Shilpi Cable Technologies Ltd
8-Apr-11
78.35
23.25
69
-66.3
2
Acropetal Technologies Ltd
10-Mar-11
130
32.35
90
-64.06
3
Omkar Speciality Chemicals Ltd
10-Feb-11
95
64.1
98
-34.59
4
PTC India Financial Services Ltd
30-Mar-11
28
19
28
-32.14
5
Shekhawati Poly-Yarn Ltd
12-Jan-11
32.5
36.2
30
20.67
6
Sudar Garments Ltd
11-Mar-11
74
122.1
77
58.57
7
Lovable Lingerie Ltd
24-Mar-11
261.5
326.55
205
59.29
8
Midvalley Entertainment Ltd
27-Jan-11
73
125.5
70
79.29
9
C Mahendra Exports Ltd
20-Jan-11
111
264.3
110
140.27
10
Fineotex Chemical Ltd
11-Mar-11
80
215.1
70
207.29

IPO 2010 Performance

S. No.
Company
List Date
List Price
Current Price
Issue Price
Change
1
Aqua Logistics Ltd
23-Feb-10
219.4
15.05
220
-93.16
2
Bajaj Corp Ltd
18-Aug-10
730
115.4
660
-82.52
3
D B Realty Ltd
24-Feb-10
430
85
468
-81.84
4
Gyscoal Alloys Ltd
27-Oct-10
76.6
14.82
71
-79.13
5
Aster Silicates Ltd
28-Jul-10
127.7
25
118
-78.81
6
Tirupati Inks Ltd
1-Oct-10
53.95
9.3
43
-78.37
7
Sea TV Network Ltd
14-Oct-10
120
23
100
-77
8
Cantabil Retail India Ltd
12-Oct-10
133.8
37.5
135
-72.22
9
Commercial Engineers & Body Builders Co Ltd
18-Oct-10
122.8
35.55
127
-72.01
10
Emmbi Polyarns Ltd
24-Feb-10
45.5
12.88
45
-71.38
11
Tarapur Transformers Ltd
18-May-10
75
22.5
75
-70
12
SKS Microfinance Ltd
16-Aug-10
1036
297.85
985
-69.76
13
Birla Shloka Edutech Ltd
29-Jan-10
49
16.25
50
-67.5
14
Midfield Industries Ltd
4-Aug-10
159.4
46.3
133
-65.19
15
Syncom Healthcare Ltd
15-Feb-10
88
28.85
75
-61.53
16
Microsec Financial Services Ltd
5-Oct-10
135.1
47.5
118
-59.75
17
Texmo Pipes and Products Ltd
10-Mar-10
101.5
39.4
90
-56.22
18
Goenka Diamond & Jewels Ltd
16-Apr-10
130
60
135
-55.56
19
BS Transcomm Ltd
27-Oct-10
251
113.5
248
-54.23
20
Intrasoft Technologies Ltd
12-Apr-10
140
68.2
145
-52.97
21
Ravi Kumar Distilleries Ltd
27-Dec-10
64
30.35
64
-52.58
22
Nitesh Estates Ltd
13-May-10
50
26.25
54
-51.39
23
Orient Green Power Company Ltd
8-Oct-10
45.7
23.3
47
-50.43
24
Hathway Cable & Datacom Ltd
25-Feb-10
246
119.75
240
-50.1
25
Vascon Engineers Ltd
15-Feb-10
170
86.15
165
-47.79
26
Man Infraconstruction Ltd
11-Mar-10
335
132.5
252
-47.42
27
Jaypee Infratech Ltd
21-May-10
93
57.9
102
-43.24
28
A2Z Maintenance & Engineering Services Ltd
23-Dec-10
390
238.2
400
-40.45
29
Ramky Infrastructure Ltd
8-Oct-10
450
268.85
450
-40.26
30
Indosolar Ltd
29-Sep-10
29.75
17.6
29
-39.31
31
Technofab Engineering Ltd
16-Jul-10
265
154.6
240
-35.58
32
DQ Entertainment (International) Ltd
29-Mar-10
135
55.9
80
-30.13
33
JSW Energy Ltd
4-Jan-10
102
70.85
100
-29.15
34
Shipping Corporation of India Ltd
15-Dec-10
136.9
105.35
140
-24.75
35
Pradip Overseas Ltd
5-Apr-10
120
85
110
-22.73
36
IL&FS Transportation Networks Ltd
30-Mar-10
287
199.5
258
-22.67
37
Prestige Estates Projects Ltd
27-Oct-10
190
142.5
183
-22.13
38
Claris Lifesciences Ltd
20-Dec-10
224.4
179.2
228
-21.4
39
Electrosteel Steels Ltd
8-Oct-10
12.35
8.96
11
-18.55
40
SJVN Ltd
20-May-10
28
21.35
26
-17.88
41
Eros International Media Ltd
6-Oct-10
213.35
145.6
175
-16.8
42
Punjab & Sind Bank
30-Dec-10
146.1
100.65
120
-16.13
43
Ashoka Buildcon Ltd
14-Oct-10
333.55
272.95
324
-15.76
44
Tecpro Systems Ltd
12-Oct-10
399.4
301.25
355
-15.14
45
NMDC Ltd
29-Mar-10
295.7
265.95
300
-11.35
46
NTPC Ltd
19-Feb-10
204
180.25
201
-10.32
47
Shree Ganesh Jewellery House Ltd
9-Apr-10
258.85
236.65
260
-8.98
48
Oberoi Realty Ltd
20-Oct-10
280
240.3
260
-7.58
49
MBL Infrastructures Ltd
11-Jan-10
190
170
180
-5.56
50
VA Tech Wabag Ltd
13-Oct-10
1655
1250
1310
-4.58
51
Hindustan Media Ventures Ltd
21-Jul-10
170
158.9
166
-4.28
52
Engineers India Ltd
12-Aug-10
315
281.55
290
-2.91
53
R P P Infra Projects Ltd
6-Dec-10
75
74.45
75
-0.73
54
Infinite Computer Solutions (India) Ltd
3-Feb-10
178.35
164.2
165
-0.48
55
MOIL Ltd
15-Dec-10
551
373.85
375
-0.31
56
Career Point Infosystems Ltd
6-Oct-10
461
322.95
310
4.18
57
Standard Chartered PLC
11-Jun-10
105
111.95
104
7.64
58
Arss Infrastructure Projects Ltd
3-Mar-10
640
488.8
450
8.62
59
Bedmutha Industries Ltd
14-Oct-10
114.4
110.8
102
8.63
60
D B Corp Ltd
6-Jan-10
250
238
212
12.26
61
Persistent Systems Ltd
6-Apr-10
400
389.7
310
25.71
62
Gujarat Pipavav Port Ltd
9-Sep-10
56.25
60
46
30.43
63
Prakash Steelage Ltd
25-Aug-10
118.55
145
110
31.82
64
Godrej Properties Ltd
5-Jan-10
510
704.25
490
43.72
65
United Bank of India
18-Mar-10
77
101.85
66
54.32
66
Coal India Ltd
4-Nov-10
287.75
386.3
245
57.67
67
Talwalkars Better Value Fitness Ltd
10-May-10
138
220.95
128
72.62
68
Mandhana Industries Ltd
19-May-10
132.7
229.3
130
76.38
69
Gallantt Ispat Ltd
11-Oct-10
48.9
91.05
50
82.1
70
Rural Electrification Corporation Ltd
8-Mar-10
230
223.95
105
113.29
71
Thangamayil Jewellery Ltd
19-Feb-10
70
179.4
75
139.2
72
Gravita India Ltd
16-Nov-10
218.75
356.45
125
185.16
73
Jubilant Foodworks Ltd
8-Feb-10
161.6
740.05
145
410.38

IPO Performance 2009

S. No.
Company
List Date
List Price
Current Price
Issue Price
Change
1
Rishabhdev Technocable Ltd
29-Jun-09
42
3.95
33
-88.03
2
Euro Multivision Ltd
15-Oct-09
70
13.6
75
-81.87
3
Raj Oil Mills Ltd
12-Aug-09
125.05
33.1
120
-72.42
4
Excel Infoways Ltd
3-Aug-09
93.05
30.05
85
-64.65
5
Thinksoft Global Services Ltd
26-Oct-09
100
52.4
125
-58.08
6
Indiabulls Power Ltd
30-Oct-09
44.95
21.1
45
-53.11
7
Den Networks Ltd
24-Nov-09
195
102.5
195
-47.44
8
Astec Lifesciences Ltd
25-Nov-09
85.55
50.35
82
-38.6
9
NHPC Ltd
1-Sep-09
39
24.8
36
-31.11
10
Adani Power Ltd
20-Aug-09
105
112.2
100
12.2
11
Jindal Cotex Ltd
22-Sep-09
75
89.1
75
18.8
12
Cox & Kings (India) Ltd
11-Dec-09
304.1
403.5
330
22.27
13
Mahindra Holidays & Resorts India Ltd
16-Jul-09
315
367.9
300
22.63
14
Oil India Ltd
30-Sep-09
1019
1379.55
1050
31.39
15
Globus Spirits Ltd
23-Sep-09
110
140
100
40
16
Pipavav Shipyard Ltd
9-Oct-09
60.05
83.3
58
43.62
17
Edserv Softsystems Ltd
2-Mar-09
55
136.55
60
127.58

IPO 2008 Performance

S. No.
Company
List Date
List Price
Current Price
Issue Price
Change
1
Resurgere Mines & Minerals India Ltd
1-Sep-08
272.05
0.59
270
-99.78
2
Greenearth Resources & Projects Ltd
4-Sep-08
206
3.17
196
-98.38
3
Anu's Laboratories Ltd
4-Jun-08
260
3.53
210
-98.32
4
Sejal Glass Ltd
1-Jul-08
110
3.85
115
-96.65
5
Birla Cotsyn India Ltd
30-Jul-08
14.7
0.52
14
-96.29
6
Nu Tek India Ltd
27-Aug-08
201.1
8.05
192
-95.81
7
Vishal Information Technologies Ltd
11-Aug-08
150
7.44
150
-95.04
8
Gammon Infrastructure Projects Ltd
3-Apr-08
180
17.85
167
-89.31
9
Porwal Auto Components Ltd
14-Jan-08
79.85
8.91
75
-88.12
10
First Winner Industries Ltd
8-Jul-08
125
17.8
125
-85.76
11
Bang Overseas Ltd
20-Feb-08
207
37.5
207
-81.88
12
Future Capital Holdings Ltd
1-Feb-08
1044
139.7
765
-81.74
13
Tulsi Extrusions Ltd
25-Feb-08
93.45
15.6
85
-81.65
14
Sita Shree Food Products Ltd
7-Apr-08
30
6.15
30
-79.5
15
Niraj Cement Structurals Ltd
19-Jun-08
185
39.75
190
-79.08
16
Archidply Industries Ltd
4-Jul-08
74.55
15.7
74
-78.78
17
OnMobile Global Ltd
19-Feb-08
440
109.65
440
-75.08
18
Cords Cable Industries Ltd
13-Feb-08
130
34.15
135
-74.7
19
Reliance Power Ltd
11-Feb-08
547.8
115.8
450
-74.27
20
Chemcel Biotech Ltd
13-Oct-08
16
5
16
-68.75
21
Lotus Eye Care Hospital Ltd
11-Jul-08
35
11.89
38
-68.71
22
Aishwarya Telecom Ltd
7-May-08
50.1
13.4
35
-61.71
23
Somi Conveyor Beltings Ltd
24-Jul-08
37.65
15.4
35
-56
24
GSS America Infotech Ltd
7-Mar-08
400
176.45
400
-55.89
25
KSK Energy Ventures Ltd
14-Jul-08
220
114.45
240
-52.31
26
Manaksia Ltd
8-Jan-08
200
78.1
160
-51.19
27
Shriram EPC Ltd
20-Feb-08
290
148.75
300
-50.42
28
Gokul Refoils and Solvent Ltd
4-Jun-08
203.45
101.15
195
-48.13
29
Alkali Metals Ltd
6-Nov-08
90
54.05
103
-47.52
30
Avon Corporation Ltd
3-Jul-08
13.9
5.32
10
-46.8
31
KNR Constructions Ltd
18-Feb-08
180
103.35
170
-39.21
32
Precision Pipes & Profiles Company Ltd
11-Jan-08
160
99.75
150
-33.5
33
Burnpur Cement Ltd
3-Jan-08
18.45
8.22
12
-31.5
34
Titagarh Wagons Ltd
21-Apr-08
550
371.15
540
-31.27
35
20 Microns Ltd
6-Oct-08
50
40.8
55
-25.82
36
IRB Infrastructure Developers Ltd
25-Feb-08
170.05
157.15
185
-15.05
37
Aries Agro Ltd
11-Jan-08
150
118
130
-9.23
38
Tata Steel Ltd
23-Jan-08
680
589.05
610
-3.43
39
BGR Energy Systems Ltd
3-Jan-08
801
484.7
480
0.98
40
Bafna Pharmaceuticals Ltd
27-Jun-08
43.8
41.35
40
3.38
41
Rural Electrification Corporation Ltd
12-Mar-08
125
223.95
203
10.32
42
J Kumar Infraprojects Ltd
12-Feb-08
100
148.75
110
35.23
43
Kiri Dyes & Chemicals Ltd
22-Apr-08
151
250.25
150
66.83
44
Manjushree Technopack Ltd
28-Feb-08
48
80.9
45
79.78
45
V-Guard Industries Ltd
13-Mar-08
82.15
190.15
82
131.89

IPO 2007 Performance

(click column header to sort results)
S. No.  
Company  
List Date  
List Price  
Current Price  
Issue Price  
Change  
1
Edelweiss Capital Ltd
12-Dec-07
1443.75
34.7
825
-95.79
2
Dhanus Technologies Ltd
17-Oct-07
300.2
15.65
295
-94.69
3
Take Solutions Ltd
27-Aug-07
876
39.65
730
-94.57
4
Glory Polyfilms Ltd
18-Jun-07
50
3.24
48
-93.25
5
Consolidated Construction Consortium Ltd
15-Oct-07
801
37.15
510
-92.72
6
Koutons Retail India Ltd
12-Oct-07
515
31.75
415
-92.35
7
IVRCL Assets & Holdings Ltd
16-Aug-07
500
60.7
550
-88.96
8
Vishal Retail Ltd
4-Jul-07
472.5
29.85
270
-88.94
9
Decolight Ceramics Ltd
19-Jun-07
57
7.52
54
-86.07
10
Motilal Oswal Financial Services Ltd
11-Sep-07
999
116.4
825
-85.89
11
Alpa Laboratories Ltd
6-Aug-07
60
10.65
68
-84.34
12
MIC Electronics Ltd
30-May-07
210.25
23.7
150
-84.2
13
Dagger-Forst Tools Ltd
1-Oct-07
43
7.42
45
-83.51
14
Roman Tarmat Ltd
9-Jul-07
295
29.5
175
-83.14
15
Kaushalya Infrastructure Development Corpn Ltd
14-Dec-07
67.9
10.8
60
-82
16
Time Technoplast Ltd
13-Jun-07
415.55
58.75
315
-81.35
17
SELL Manufacturing Company Ltd
21-Aug-07
87.9
17.8
90
-80.22
18
Magnum Ventures Ltd
20-Sep-07
36.95
6.45
30
-78.5
19
Brigade Enterprises Ltd
31-Dec-07
399.7
89
390
-77.18
20
Puravankara Projects Ltd
30-Aug-07
399
94.5
400
-76.38
21
Hilton Metal Forging Ltd
24-May-07
75
16.8
70
-76
22
Rathi Bars Ltd
23-Nov-07
38
8.7
35
-75.14
23
Empee Distilleries Ltd
26-Nov-07
400
111.45
400
-72.14
24
Kolte Patil Developers Ltd
13-Dec-07
220
41.35
145
-71.48
25
Circuit Systems (India) Ltd
2-Nov-07
42
10
35
-71.43
26
Housing Development & Infrastructure Ltd
24-Jul-07
567.5
146.85
500
-70.63
27
Indowind Energy Ltd
14-Sep-07
80.25
19.8
65
-69.54
28
Mundra Port & Special Economic Zone Ltd
27-Nov-07
770
135.45
440
-69.22
29
Allied Digital Services Ltd
25-Jul-07
332.5
61.25
190
-67.76
30
Jyothy Laboratories Ltd
19-Dec-07
799
227.25
690
-67.07
31
Advanta India Ltd
19-Apr-07
640
214.75
640
-66.45
32
Allied Computers International (Asia) Ltd
23-Nov-07
21
4.19
12
-65.08
33
Nelcast Ltd
27-Jun-07
252.05
92.25
219
-57.88
34
DLF Ltd
5-Jul-07
582
221.75
525
-57.76
35
Omaxe Ltd
9-Aug-07
400
131.7
310
-57.52
36
Refex Refrigerants Ltd
20-Aug-07
69.1
28.25
65
-56.54
37
Orbit Corporation Ltd
12-Apr-07
90
48.2
110
-56.18
38
Barak Valley Cements Ltd
23-Nov-07
65
19.75
42
-52.98
39
Maytas Infra Ltd
25-Oct-07
480
177.4
370
-52.05
40
Celestial Biolabs Ltd
17-Jul-07
70
30.45
60
-49.25
41
Nitin Fire Protection Industries Ltd
5-Jun-07
332.5
96.45
190
-49.24
42
Saamya Biotech (India) Ltd
19-Oct-07
17.5
5.3
10
-47
43
Asian Granito India Ltd
23-Aug-07
100.15
52.25
97
-46.13
44
Transformers & Rectifiers India Ltd
28-Dec-07
701.1
256
465
-44.95
45
Surya Chakra Power Corporation Ltd
23-Jul-07
30
12.3
20
-38.5
46
BEML Ltd
17-Jul-07
1199
661.9
1075
-38.43
47
Ankit Metal & Power Ltd
10-Jul-07
37.9
22.6
36
-37.22
48
Renaissance Jewellery Ltd
12-Dec-07
190
95.15
150
-36.57
49
Meghmani Organics Ltd
28-Jun-07
33.25
13.28
19
-30.11
50
Simplex Projects Ltd
3-Aug-07
323.75
135
185
-27.03
51
K P R Mill Ltd
28-Aug-07
201.2
166.6
225
-25.96
52
Asahi Songwon Colors Ltd
4-Jun-07
93
73.65
90
-18.17
53
NTPC Ltd
5-Nov-04
70
180.25
201
-10.32
54
Power Finance Corporation Ltd
23-Feb-07
104
214.05
0
0
55
Power Grid Corporation of India Ltd
5-Oct-07
85
102.35
90
13.72
56
ICICI Bank Ltd
6-Jul-07
995
1074.9
940
14.35
57
Zylog Systems Ltd
17-Aug-07
525
407.45
350
16.41
58
Binani Cement Ltd
28-May-07
75
90.5
75
20.67
59
Spice Communications Ltd(merged)
19-Jul-07
55.75
56.75
46
23.37
60
Central Bank of India
21-Aug-07
130.1
128.35
102
25.83
61
Omnitech Infosolutions Ltd
14-Aug-07
183.75
141.8
105
35.05
62
Fortis Healthcare Ltd
9-May-07
105
152.3
108
41.02
63
Supreme Infrastructure India Ltd
18-Oct-07
189
231.4
108
114.26
64
eClerx Services Ltd
31-Dec-07
320
706.35
315
124.24
65
Kaveri Seed Company Ltd
4-Oct-07
201.15
384.3
170
126.06
66
Bhagwati Banquets & Hotels Ltd
17-May-07
46.35
91.55
40
128.88
67
Insecticides India Ltd
30-May-07
105
290.45
115
152.57
68
Religare Enterprises Ltd
21-Nov-07
323.75
478.4
185
158.59
69
ICRA Ltd
13-Apr-07
525
1085.5
330
228.94
70
Varun Industries Ltd
22-Nov-07
105
221.1
60
268.5
71
Everonn Education Ltd
1-Aug-07
245
566.1
140
304.36

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