Source: IRIS NEWS DIGEST (15 September 2008)
IPO Investors lose over Rs 50 bn in 2008
Investors have lost above Rs 50 billion on the money invested in initial public offering (IPO) since January
as most companies are trading at discount of their IPO prices, reports Business Line.
The 34 IPOs that were launched in this year raised Rs 169.20 billion but the current value of these money
invested stand at Rs 115.62 billion, thus new issues have together suffered 31.67% loss in value. Out of
the 34 IPOs, 26 have closed below their issue price. Five companies with mega IPO plans have
withdrawn their prospectus prior to SEBI approval.
The shares of companies (listed during second quarter) which are trading below the issue prices include
Resurgere Mines and Minerals, Nu Tek India, Birla Cotsyn India, KSK Energy, Lotus Eye Care, First
Winner Industries, Archidply Industries and Sejal Ar chitectural Glass.