Business Daily from THE HINDU group of publications
Monday, September 15, 2008
Markets
Investors in IPOs have lost over Rs 5,000 cr in 2008 so far
NEW DELHI: Primary market investors have lost more than Rs 5,000 crore with shares of most of
companies, which came out with initial public issue since January, trading at a discount.
“Out of 34 IPOs issued this calendar year, 26 of them closed below their issue price last week. These
IPOs have raised Rs 16,920 crore but the current value stands at Rs 11,562 crore. So they are
suffering a loss of 31.67 per cent,” said Mr. Jagannadham Thunuguntla, Equity Head, NEXGEN
Capitals Limited.
He said five companies which include JSW Energy, RNS Infrastructure, Ybrant Technologies, Elysium
Pharma and Kamayani Patients Care, with the proposed issue of more than Rs 4,000 crore, withdrew
their IPOs prior to SEBI approval.
In 2008, 20 companies did not tap the primary market despite approval from SEBI due to uncertainty
in the markets. Sha