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100 percent gain for IPO investors after Oct crash
By siliconindia
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Thursday, 04 June 2009, 22:39 IST
Bangalore: The IPO investors, who invested in shares of several companies that issued initial public offerings (IPOs) last year, had to digest the bad news when the equity markets hit the ground. Now, these investors have something to cheer as most of the IPO stocks have almost doubled after the crash in October. Though, a part of the investments were recovered, an analysis of 38 stocks showed that a third of the stocks were less than 50 percent of their offer price.
The returns from the IPO stocks of Manjushree Extrusions, Somi Conveyor Beltings, Birla Cotsyn, Onmobile Global, Chemcel Bio-Tech, KNR Constructions, Niral Cement, Aishwarya Telecom, Sita Shree Food Products and Kiri Dyes have more than doubled since the market's debacle last year. Close to 100 percent gains were also delivered by around 10 IPO stocks including Resurgere Mines, J Kumar Infraprojects, Future Capital, 20 Microns, Sejal Glass, and KSK Energy, reports The Economic Times.
Even after such a tremendous rally by these stocks, many of them are still at half their offer prices. This category includes stocks like Chemcel, KNR Constructions, Sita Shree Food, Manjushree Extrusions, Somi Conveyor Beltings, Birla Cotsyn, Future Capital, Sejal Glass, Resurgere Mines, 20 Microns and Cords Cable Industries.
But, there are stocks that have already reached above or very close to their offer price. IPOs of J Kumar Infraprojects, Kiri Dyes, Rural Electrification Corporation, Gokul Refoils and Austral Coke have climbed above the offer price, while stocks such as Gammon Infra, V-Guard, KSK Energy, Lotus Eye, Onmobile, Avon Corporation are just around 5-20 percent away from their IPO offer prices.