Two-thirds of 2010 QIPs trade at discount: CRISIL Equities
CRISIL Equities has come out with its report on Qualified Institutional Placements (QIPs) and revealed that two-thirds (66%) of QIPs in 2010 have given negative returns, with 33 out of the 50 QIPs trading below their offer prices.
June 13, 2011 / 18:13 IST
CRISIL Equities has come out with its report on Qualified Institutional Placements (QIPs) and revealed that two-thirds (66%) of QIPs in 2010 have given negative returns, with 33 out of the 50 QIPs trading below their offer prices.
A study by CRISIL Equities reveals that two-thirds (66%) of Qualified Institutional Placements (QIPs) in 2010 have given negative returns, with 33 out of the 50 QIPs trading below their offer prices. The total return on investments, as measured by the difference in the offer price and the market price as on June 03, 2011, by all the QIPs was negative 19% (median value of returns yielded by all the QIPs) compared to positive 2% in the broader index, S&P CNX NITFY and negative 1% in the S&P CNX 500, during the same period. Real estate, construction, IT and ITeS, and textile companies were the major underperformers.Improvement in the economic scenario led to a significant spurt in QIP activity in 2010, with 50 companies raising Rs 225 bn through this route. Financial services, real estate, IT & ITeS, construction and automobile (including automobile components) sectors - comprising 20 companies - together raised Rs ~125 bn or 56% of the total QIP amount. Adani Enterprises Ltd
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