Investors made more money in second-half IPOs

study based on 56 IPOs that got listed in calendar 2005, shows that scrips listed in the second half gave better returns than those listed in the first half.

In the first half, while the BSE Sensex gained a modest 8.95 per cent, the 22 IPOs that were listed during the period saw an average premium of 21 per cent on the day of listing.

In the second half, however, as the index gained 30.64 per cent, the 34 IPOs yielded an average 52 per cent returns on the day of listing.

Of the 34 IPOs that got listed in the second half, Vivimed Labs, Infrastructure Development Finance (IDFC) and Amar Remedies listed with a premium of over 100 per cent.

Other five stocks got listed at 50-100 per cent premium; nine of them got premium between 30 per cent and 40 per cent and 13 ended the first day with 1 per cent to 30 per cent gains.

Thirty-four companies, which mobilised Rs 6,012 crore in second half, have increased investors' wealth by Rs 3,131 crore. In contrast, 22 stocks, which were listed in the first half, had increased shareholders' wealth by Rs 850 crore on an investment of Rs 4,029 crore.

The premium for the IPOs listed in the second half continued even after their listings with the market capitalisation of 34 firms increasing by another 8 per cent (Rs 728 crore). Compared with this, IPOs listed during the first half gained 9 per cent after listing.

Vivimed was listed at Rs 218.35, a 212 per cent premium to its issue price of Rs 70 a share and Amar Remedies listed at 101 per cent premium to Rs 56.05 (Rs 28) on BSE. IDFC's market price more than doubled on the first day of listing. The company raised Rs 1,372 at Rs 34 a share and got listed at Rs 69.55 on the BSE.