IPO investors sitting on 50% gains

Investors who had subscribed to a slew of initial public offerings (IPOs) this year are a smiling lot.

The aggregate market value of these shares has appreciated by almost 50 per cent ie. from Rs 11,767 crore (the size of the IPOs) to Rs 17,212 crore on December 15, 2004.

Most of these shares are trading at a premium of up to 350 per cent of their issue prices on the Bombay Stock Exchange (BSE).

National Thermal Power Corporation (NTPC), Tata Consultancy Services (TCS), Patni Computer Systems, Petronet LNG, Biocon, NDTV, Datamatics Technologies, Power Trading Corporation (PTC) and seven other companies had collectively mobilised Rs 11,767 crore through IPOs in the current calendar year.

All stocks are currently trading at a premium to their issue price. Some shares such as, Indiabulls Financial Services, PTC, Dishman Pharmaceuticals and Ramkrishna Forging are now quoting at double the offer price, while the market prices of some scrips such as Crews BOS Products, NDTV, Patni Computer Services, Biocon and Petronet LNG are hovering between 54 per cent and 71 per cent over their issue price.

National Thermal Power Corporation (NTPC), which had hit the market with the largest IPO of Rs 5,368 crore, is now trading at Rs 84, a 35 per cent premium over its offer price of Rs 62 per share.

TCS is now trading at Rs 1,246.30, a 47 per cent premium over its issue price of Rs 850 per share. The company had raised Rs 4,713 crore in July 2004.

The Indiabulls Financial Services scrip has been the biggest gainer of the lot, registering a 347 per cent gain since listing. The market price of the Indiabulls scrip has moved up from its offer price of Rs 19 per share to Rs 84.85 yesterday.

The PTC share price has appreciated by 235 per cent to Rs 53.60 from its issue price of Rs 16 per share.

The Dishman Pharmaceutical's scrip price has increased by 231 per cent to Rs 580, from the offer price of Rs 175 per share.

The Ramkrishna Forging scrip, which was priced at Rs 20, is now trading at a 202 per cent premium, at Rs 60.40 on the BSE.

The initial public offerings now trading at over 50 per cent premium to their issue price include Crews BOS Products at 71 per cent to Rs 59.90 against its offer price of Rs 35 per share.

NDTV is trading at a 69 per cent premium, at Rs 118.45 (Rs 70), Patni Computer Systems at 60 per cent to Rs 368.30 (Rs 230), Biocon at 56 per cent to Rs 489.90 (Rs 315) and Petronet LNG at 54 per cent to Rs 23.15 (Rs 15).

Surya Pharma is now trading at a 33 per cent premium to Rs 59.70 against its offer price of Rs 45 per share.

SAL Steel is currently quoted 34 per cent higher at Rs 18.75 from its issue price of Rs 14 per share, Datamatics Technologies at 21 per cent to Rs 133 (Rs 110) and MSK Projects at 7 per cent to Rs 42.95 (Rs 40 per share).