1. Good to note that Nineteencompaniesare settotap the Indiancapital marketthroughinitial public
offeringsinthe nextcouple of months,toraise about₹12,000 crore.
But referthe studybyPrime Database:In the six yearssince April 1,2009, 103 companies,which
were tocollectivelyraise ₹48,150 crore,allowedSEBI’sapproval tolapse.Another58 companies
that had filedofferdocumentswithSEBItoraise ₹17,685 crore withdrew them
The highlightsof 'Institutional InvestorAdvisoryServices(IiAS)'studyof the 394 initial public
offeringsmade fromApril 1,2003 to July31, 2014 findingsalsomaybe referredto:
 only164 of those companies(42per cent) are currentlytradingabove theirofferprice.
 164 companiesthatare deliveringreturnstoinvestors,the gainsare notsignificant.
 In 20 percent of these companies,investorswouldhave made higherpost-tax returnsby
investinginfixeddepositsratherthanthese IPOs, ata pre-tax couponrate of eightpercent.
(Forthe study,currentshare price wastakenas onJanuary 16 or 28, 2015.)
 Of the firstquartile of largestIPOs,53.9 percent of the issuesgave positive returns.But
there were only41 such issuesoverthe decade sizedat₹5,000 crore and above.
 The successrate has steadilymoveddownto50 percent (for₹5,000-10,000 crore),46.1 per
centand 35.2 percentfor the lowestquartile.Whereassevenof the 10 largestissuesquote
above the issue price,inthe case of smallerissuesonlythree quote aboveissueprice.
 IPOsof publicsectorfirmshave outperformedprivatesector.Of the 20 PSUs, 75 percent
have generatedpositive returns.Onthe otherhand,only40 per cent(149 of the remaining
374) of private sectorIPOsgeneratedpositive returns
It issure thatthe fundamentalsof the companies,particularlythe technical aspectsrulesthe sucess
of anyIPO.Short time gainsandresilienceof secondarymarketcannotbe a judgingfactorat all.