Latest India IPO’s and investor worries

Indian initial public offerings are currently having a tough time in the secondary market. Some of the previous IPO’s like DLF, ADSL etc had decent returns in the past. However, it appears that the current lot is not the hottest among investors.

Following table shows the IPO’s price data and percent change since listing. Only scrips that got listed between December 12, 2007 and February 1, 2008 are discussed here.

Out of the 13 companies mentioned above, Edelweiss Capital provided the highest short term gains of 112.85% followed by Aries Agro (93.38%) and Transformers and Rectifiers India Limited (90.61%). Except Precision Pipes and Profiles, other companies closed above the IPO prices at least once.

On the downside, five companies are currently trading below their IPO prices viz. Kaushalya Infrastructure Development Corporation, Brigade Enterprises, Renaissance Jewellery, Manaksia and Precision Pipes & Profiles.

All the scrips have considerably lost from their recent highest close. This list is topped by Edelweiss Capital and Kaushalya while the least affected are Jyothy Laboratories and Future Capital Holdings.

The risk with IPO’s is that they do perform differently in varying market conditions. Read more here:

How do IPO’s fare in Secondary Market?

Before putting the hard earned money in IPO’s it is to be understood very clearly that in the absence of price data, risks/rewards cannot be determined. One has to rely totally on fundamental analysis for investing in IPO’s. Even companies belonging to a sector (like power, cement, real estate etc.) may perform differently.