10 of 15 new stocks dip be­low IPO price

Financial Chronicle - - MONEY GAME - FC BUREAU

More than half of 15 com­pa­nies that made their stock mar­ket de­but this fis­cal are trad­ing be­low their is­sue price, plung­ing as much as 53 per cent.

A to­tal of 15 com­pa­nies have been listed on the bourses.

Di­nesh En­gi­neers, a pas­sive com­mu­ni­ca­tion in­fra­struc­ture provider, with­drew its ini­tial pub­lic of­fer early last month due to slug­gish in­vestors’ re­sponse.

Out of the 15 newly listed com­pa­nies, shares of 10 firms are trad­ing be­low their IPO price, tum­bling as much as 53 per cent, an anal­y­sis showed.

Shares of these 10 firms have de­clined in the range of 0.5-53 per cent till the lat­est trad­ing ses­sion i.e. Novem­ber 7. Shares of ICICI Se­cu­ri­ties have been the worst hit, plung­ing 53.20 per cent from its is­sue price of Rs 520 per share.

ICICI Se­cu­ri­ties, which got listed in April, had to re­duce the size of its ini­tial pub­lic of­fer af­ter the sale elicited a slug­gish re­sponse, es­pe­cially from high net­worth in­di­vid­u­als.

The scrip of In­doS­tar Cap­i­tal Fi­nance has tum­bled 45.39 per cent against its IPO price of Rs 572 a share.

Weak trad­ing per­for­mance by these firms came amid volatile mar­ket con­di­tions and slug­gish in­vestor sen­ti­ment.

Of the 15 com­pa­nies, five have, how­ever, man­aged to stay afloat, giv­ing re­turns of up to 46 per cent.

Shares of rail­ways con­sul­tancy firm Rites have surged 45.94 per cent over its is­sue price of Rs 185.

Be­sides, chem­i­cal man­u­fac­turer Fine Or­ganic In­dus­tries has given a smart re­turn of 42.91 per cent from its IPO price of Rs 783.

The broader mar­ket has seen se­vere volatil­ity re­cently, with the Sen­sex fall­ing by 3,407.39 points, or 8.81 per cent, since Au­gust this year.

The key in­dex had in April gained 1,905 points or 5.72 per cent.

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