5 IPOs close lower than issue price

Making money from initial public offers is getting more difficult. Five new issues out of 11 that were listed on the bourses in the past month closed at a discount to their issue price on the day of listing.

Gitanjali Gems, which was listed today, closed at Rs 167.15, down 14 per cent from its offer price of Rs 195. Jagran Prakashan, which was listed on February 22, closed at 14.4 per cent discount to its issue price of Rs 320 on the day of listing.

Jagran is currently traded at Rs 275.55, down 14 per cent. Among other stocks, Sakuma Exports closed at Rs 46.95, down 6 per cent on the day of listing over its issue price of Rs 50.

The stock has slipped further and currently is trading at Rs 43.45, down 13.1 per cent. Sree Sakthi Papers, which closed at Rs 29.20 over its issue price of Rs 30 on the day of listing is now trading at Rs 16.90, down 44 per cent.

Dynamic Products was down 19 per cent on the day of listing but recovered subsequently and is now trading at Rs 32.30, down 8 per cent over its issue price of Rs 35.

GVK Power and Infrastructure closed at Rs 315.55 on its listing against its issue price of Rs 310 but currently it is trading at Rs 290.10, down 6 per cent over its issue price.