207 Investors following Jagjanani Text. Share this News with them.
0
Like this story, share it with millions of investors on M3
More than 53% listings trading below IPO price
Market has not been showing any signs of recovery since fall of its highest point of 21,206.77 in mid January 2008, lost by nearly 28%. More than 53% recent listings are trading below issue price. Amongst them, 19 stocks are nearly 50-70% below their issue price and 31 stocks trading 20-50% below issue price.
Market has not been showing any signs of recovery since fall of its highest point of 21,206.77 in mid January 2008, lost by nearly 5874 points or 28%. The Sensex has still been hovering around 16k to 17k for long time. The reasons for this are Subprime problem in US, experts believe that US may go in recession, overall weak earnings from companies for third quarter, rupee appreciation, overheating of markets etc.
FIIs are still net sellers of Rs 13,027.8 crore since that fall though it bought worth Rs 4,882 crore in February while mutual fund has made some buying in this correction, bought nearly Rs 5172.3 crore of shares though there is some selling in March.
All stocks have touched 52-week highs in first half of January. However, same stocks hit 52-week lows in second half of January. Same case has reflected in primary market and for new listings. Four companies have postponed their IPOs. Companies have just got subscribed.
Moneycontrol.com studied the IPO performance since January 2007, listed 118 stocks. More than 53% listings of them are trading below their issue price. Amongst them, 19 stocks are nearly 50-70% below their issue price and 31 stocks trading 20-50% below issue price.
Power stocks were the limelight of the market, trading at high valuations but correction impacted a lot. Biggest IPOs in India capital market history, Reliance Power , which raised more than 11,000 crore through issue, touched a low of Rs 332.50 as against its issue price of Rs 450. The stock is down nearly 16% from its issue price.
