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Initial public offers (IPOs) made in the last four years are showing negative returns on an aggregate basis, and only those made in 2004 and those made by state-owned units are still in the green, a study shows.
'Only those made in 2004 are still showing positive returns,' said the study prepared by India's fourth largest share brokerage firm, the Delhi-based SMC Group.
The study, which calculated the returns of IPOs made in the last five years - 2004 to 2008 - on the basis of mark-to-market (MTM) prices as of Tuesday, found that the 19 IPOs made in 2004, with a total investment of $6.2033 billion (Rs.248 billion), have a MTM of $8.493 billion (Rs.339.7 billion), representing a return on investment of 36.92 percent.
'Interestingly, public sector IPOs are showing positive returns,' said SMC Group director Jagannadham Thunuguntla.