FY07 listing: 60% shares trading at discount

Of every 10 companies that floated initial public offerings (IPOs) and got listed during 2006-07, six are trading below their issue price. The year saw as many as 86 IPOs followed by listings, of which 52 are available at a discount.

Investors' wealth in these 52 stocks declined 24 per cent since their listings. These IPOs have collectively raised Rs 11,568 crore and reported an erosion in value to the tune of Rs 2,775 crore.

Uttam Sugar, Powersoft Global Solutions, JHS Svendgaard Laboratories and Oriental Trimex "� these four new issues are available at half their offer price. While twenty-six others are being quoted at 25 to 50 per cent discount and fourteen others between 10 and 25 per cent discount. 

MIXED FORTUNES Price in Rs
	Offer	Close*	%chg
GAINERS
Tech Mahindra	365	1472.00	303.29
Pyramid Saimira	100	271.65	171.65
Develop Credit Bank	26	67.50	159.62
Tantia Constructions	50	121.85	143.70
Global Broadcasting	250	540.70	116.28
Info Edge	320	683.65	113.64
Atlanta	150	314.15	109.43
MindTree Consulting	425	854.40	101.04
Sun TV	875	1570.00	79.43
GMR Infra	210	367.15	74.83
LOSERS
Uttam Sugar	340	100.85	-70.34
Powersoft Global	22	10.50	-52.27
JHS Svendg Lab	58	28.85	-50.26
Oriental Trimex	48	24.00	-50.00
Broadcast Initiatives	120	63.20	-47.33
Emkay Share	120	63.80	-46.83
R Systems Int'l	250	134.95	-46.02
Ruchira Papers	23	13.25	-42.39
Bluebird	105	61.25	-41.67
Solar Explosives	190	112.50	-40.79
*As on March 26, 2007

While foreign institutional investors (FIIs) lost Rs 1,248 crore in thirty-six IPOs, Indian public saw Rs 799 crore value erosion in these IPOs. Mutual funds saw a wealth erosion of Rs 196 crore since listings of these stocks. Cairn India, which mobilised Rs 5,261 crore at offer price of Rs 160 per share, is currently being traded at 21 per cent discount at Rs 125.80.

Unity Infraprojects raised Rs 232 crore traded at Rs 443, 34 per cent lower against its issue price of Rs 675 on the Bombay Stock Exchange. Deccan Aviation Rs 97.30 (Rs 148), Lanco Infratech Rs 172.20 (Rs 240), Akruti Nirman Rs 401.35 (Rs 540) and House of Pearl Fashions Rs 352.95 (Rs 550) are discounted more than 25 per cent from their offer price.

However, investors' wealth in the remaining thirty-four stocks appreciated Rs 6,975 crore to Rs 24,489 crore. These thirty-four new issues combined mobilised Rs 17,515 crore through primarily market.

Tech Mahindra, the most successful IPO currently trades at Rs 1,472, at 303 per cent high against its issue price of Rs 365 per share on BSE.

Pyramid Saimira is trading at Rs 271.65 against its offer price of Rs 100, Development Credit Bank Rs 67.50 (Rs 26), Tantia Constructions Rs 121.85 (Rs 50), Global Broadcasting Rs 540.70 (Rs 250), Info Edge Rs 683.65 (Rs 320), Atlanta Rs 314.15 (Rs 150) and MindTree Consulting Rs 854 (Rs 425) are other newly listed stocks trading at more than double their issue price.