Retail investors make Rs 1,000 cr from 10 issues

Rs 3,377 cr profit for institutional investors.

Retail investors made a clean Rs 1,000 crore profit in the 10 public offers floated in the last three months. Their investment of Rs 3,997 crore in the 10 issues appreciated by 26.53 per cent in value, against an average appreciation of 22.4 per cent for all subscribers.

A retail investor's investment in the ONGC offer appreciated by 24.56 per cent: retail investors' cumulative investment of Rs 2,662 crore fetched them a whopping Rs 654 crore return in just one month.

Similarly, retail investors pocketed a cool Rs 67 crore profit within two days of the Biocon scrip listing on the bourses. In other public offers, investments in Gail fetched them Rs 116 crore, in Petronet LNG Rs 67 crore, and in IPCL Rs 77 crore.

Institutional investors, however, made a cool profit of Rs 3,377 crore over their initial investment of Rs 15,071 crore. Their initial investment appreciated by 22.4 per cent to Rs 18,653 crore.

The 10 book-built issues were ONGC, IPCL, CMC, Gail, Dredging Corporation, IBP, Biocon, Power Trading Corporation, Petronet and TV Today.

The major gainers were the qualified institutional investors (QIBs), which made a hefty Rs 1,508 crore profit on their investment of Rs 7,220 crore. Non-institutional investors (NIIs) gained Rs 734 crore while employees of ONGC, Gail and Petronet LNG made a profit of Rs 75 crore.

Profits in the ONGC issue accounted for 62.6 per cent (Rs 2,113 crore) of the total profits, in which QIBs gained Rs 933 crore, NIIs Rs 466.5 crore and employees Rs 60 crore. ONGC offered shares at Rs 750 each to QIBs and NIIs while retail investors were offered shares at Rs 712.50. The ONGC stock closed at Rs 887.45 on April 8, registering an appreciation of 18 per cent over the issue price.

Investors, however, almost doubled their investment in Biocon. The issue, which was priced at Rs 315 per share of Rs 5 each, closed yesterday at Rs 581.20, registering a 85 per cent appreciation since listing.

Investment in Gail fetched profits of Rs 386 crore. QIBs and NIIs earned Rs 267 crore and retail investors Rs 115.60 crore. The other issues where investors made huge profits are IPCL (Rs 209 crore profit), Power Trading Corporation (Rs 151 crore), Petronet LNG (Rs 123 crore), Dredging Corporation (Rs 64 crore) and TV Today (Rs 61 crore).

However, investors in IBP and CMC gained only marginally as these two stocks witnessed modest rise in their prices.