29 firms mop up Rs 6726 cr via IPOs

STOCK MARKETS IN FIRST-HALF

Initial public offers (IPOs) of 29 companies collectively mopped up Rs 6,726 crore from the primarily market between April-September - highest in last one decade.

In the first half of last financial year (2005-06), 25 firms had raised Rs 4,641 crore through IPOs. Comparable number in the first half of 2004-05 was Rs 5,802 crore, mobilised by nine companies.

Reliance Petroleum's mega IPO of Rs 2,700 crore hit the market in April. It was followed by GMR Infrastructure (Rs 789 crore), Sun TV (Rs 603 crore), Tech Mahindra (Rs 465 crore), Deccan Aviation (Rs 363 crore) and Unity Infraprojects (Rs 232 crore) in last six months.

Six IPOs raised Rs 3,492 crore in April 2006 and three new issues collected Rs 711 crore in May. After the market meltdown in second week of May, Vigneshwara Exports (Rs 52 crore), Shirdi Industries (Rs 44 crore) and Bluplast Industries (Rs 35) which plan to hit the market dropped their IPO plans.

The IPO wave was back in August with tell-tale signs of market revival when four new issues collected Rs 695 crore. In September, another 14 new issues raised Rs 899 crore.

Among corporations, Voltamp Transformers, Development Credit Bank, Allcargo Global Logistics, Prime Focus and Plethico Pharmaceuticals collected between Rs 110 crore to Rs 170 crore each from the public.

HOV Services, Hanung Toys and Textiles, Gwalior Chemicals Industries, Gayatri Projects, Minar International, Atlanta, Global Vectra Helicorp and Action Constructions Equipment raised money from the primary market in the range of Rs 50 to Rs 90 crore each.

Out of 29 IPOs, 18 stocks have been listed on the exchanges and seven of them are trading below their issue prices on the Bombay Stock Exchange.

Investors' wealth of these seven stocks declined 22 per cent to Rs 667 crore from Rs 853 crore. Deccan Aviation was the largest loser, down by 31 per cent at Rs 102.80 against its offer price of Rs 148 per share. Prime Focus traded at Rs 322.75, a 23 per cent below its IPO price of Rs 417.

Among other losers, Unity Infraprojects, HOV Services and Kew Industries traded 10 per cent to 15 per cent below their offer prices. Deep Industries and JRG Securities have been quoting 7 per cent discount each while Allcargo Global Logistics has been trading at par of issue price on BSE.

Action Constructions, Tech Mahindra and Kamdhenu Ispat are among the successful IPOs launched this year. These stocks have been trading over 50 per cent premium to their issue prices.

Reliance Petroleum, Plethico Pharma, GMR infrastructures, Atlanta and Voltamp Transformers quoting at 10 per cent to 30 per cent premium of their offer prices.