The year 2010 which saw a total of 70 issuers (IPOs as well as FPOs) hitting the primary market in India, probably the highest in recent few years, returns have, however, been mostly disappointing.
The IPO (Initial Primary Offer) market in India returned to normalcy after being moribund in the wake of the global financial crisis which unraveled towards the fag end of 2008; in 2009, only 20 IPOs hit the market raising a mere Rs. 20,000 crore. These issuers raised over Rs. 71,000 crore, of which Rs. 39,710 crore was raised in IPOs while FPOs accounted for Rs. 31,403 crore. Another highlight was that the majority of the IPOs came from the public sector as the government accelerated its disinvestment program during the year. The government mopped up nearly Rs. 50,000 crore through its partial stake sale program. The public sector undertaking Coal India’s, IPO, which hit the market during the year, is the largest ever issue to hit the Indian primary market till date. The Coal India IPO raised Rs.15,000 crore. The smallest IPO to hit the market was Thangamayil Jewellery with an issue size of Rs. 29 crore. The year also saw India's first IDR, Standard Chartered IDR, which raised about Rs. 2,500 crore.
IPOs in India in 2010: No big bangs for your bucks! | |||
Company | Issue Price | Current Price | %Gain/Loss |
December-2010 | |||
Punjab & Sind | 120.00 | 120.90 | 0.75 |
A2Z Maintenance | 400.00 | 302.85 | -24.29 |
Claris Life | 228.00 | 195.50 | -14.25 |
MOIL | 375.00 | 432.00 | 15.20 |
RPP Infra Proj | 75.00 | 57.10 | -23.87 |
November-2010 | |||
Gravita India | 125.00 | 230.00 | 84.00 |
Coal India | 245.00 | 308.05 | 25.73 |
October-2010 | |||
BS TransComm | 248.00 | 129.35 | -47.84 |
Prestige Estate | 183.00 | 143.50 | -21.58 |
Gyscoal Alloys | 71.00 | 24.00 | -66.20 |
Oberoi Realty | 260.00 | 243.50 | -6.35 |
Commercial Eng | 127.00 | 43.75 | -65.55 |
Ashoka Buildcon | 324.00 | 290.50 | -10.34 |
Sea TV Network | 100.00 | 38.00 | -62.00 |
Bedmutha Ind | 102.00 | 84.95 | -16.72 |
Va Tech Wabag | 1310.00 | 1476.95 | 12.74 |
Tecpro Systems | 355.00 | 356.50 | 0.42 |
Cantabil Retail | 135.00 | 55.25 | -59.07 |
Electrosteel St | 11.00 | 9.44 | -14.18 |
Ramky Infra | 450.00 | 304.95 | -32.23 |
Orient Green | 47.00 | 30.15 | -35.85 |
Career Point | 310.00 | 358.95 | 15.79 |
Eros Intern | 175.00 | 141.85 | -18.94 |
Microsec Fin | 118.00 | 51.65 | -56.23 |
Tirupati Inks | 43.00 | 14.07 | -67.28 |
September-2010 | |||
Indosolar | 29.00 | 22.55 | -22.24 |
Gujarat Pipavav | 46.00 | 58.85 | 27.93 |
August-2010 | |||
Prakash Steelag | 110.00 | 127.40 | 15.82 |
Bajaj Corp | 660.00 | 501.25 | -24.05 |
Midfield Ind | 133.00 | 82.25 | -38.16 |
July-2010 | |||
Aster Silicates | 118.00 | 35.20 | -70.17 |
Hindustan Media | 166.00 | 171.00 | 3.01 |
Technofab Engg | 240.00 | 180.90 | -24.62 |
Parabolic Drugs | 75.00 | 54.75 | -27.00 |
May-2010 | |||
Jaypee Infra | 102.00 | 69.30 | -32.06 |
SJVN | 26.00 | 22.05 | -15.19 |
Mandhana Ind | 130.00 | 283.00 | 117.69 |
Tarapur Trans | 75.00 | 27.75 | -63.00 |
Nitesh Estates | 54.00 | 30.60 | -43.33 |
Talwalkars Fitn | 128.00 | 229.75 | 79.49 |
April-2010 | |||
Goenka Diamond | 135.00 | 73.00 | -45.93 |
Intrasoft Tech | 145.00 | 85.70 | -40.90 |
Shree Gan Jewel | 260.00 | 193.10 | -25.73 |
Persistent | 310.00 | 441.90 | 42.55 |
Pradip Oversea | 110.00 | 73.50 | -33.18 |
March-2010 | |||
ILandFS Trans | 258.00 | 269.70 | 4.53 |
DQ Entertain | 80.00 | 87.95 | 9.94 |
United Bank | 66.00 | 95.20 | 44.24 |
Man Infra | 252.00 | 202.95 | -19.46 |
Texmo Pipes | 90.00 | 40.90 | -54.56 |
ARSS Infra | 450.00 | 698.95 | 55.32 |
February-2010 | |||
Hathway Cable | 240.00 | 155.00 | -35.42 |
Emmbi Polyarns | 45.00 | 15.90 | -64.67 |
DB Realty | 468.00 | 192.00 | -58.97 |
Aqua Logistics | 220.00 | 35.00 | -84.09 |
Thangamayil | 75.00 | 163.00 | 117.33 |
VasconEngg | 165.00 | 124.50 | -24.55 |
Syncom Health | 75.00 | 42.30 | -43.60 |
Jubilant Food | 145.00 | 572.45 | 294.79 |
Infinite Comp | 165.00 | 201.95 | 22.39 |
January-2010 | |||
MBL Infra | 180.00 | 200.00 | 11.11 |
DB Corp | 212.00 | 250.00 | 17.92 |
Godrej Proper | 490.00 | 604.00 | 23.27 |
JSW Energy | 100.00 | 91.70 | -8.30 |
Source: Moneycontrol.com | |||
On the flipside, despite being a record year for IPOs, the performances have proved utterly disappointing for investors with as many as 40 IPOs having given negative returns post-listing. Among the notable gainers include Jubilant Food (returns of 295%), Mandhana Ind (117%), Thangamayil (117%), and Talwalkars Fitness (79%) while Aqua Logistics (-84%) and Emmbi Polyarns (-65%) were the worst performers. In comparison, both the Sensex and Nifty delivered almost identical returns of 17% during the year.
PSU IPOs attracted maximum investor interest with IPOs of MOIL and CIL seeing oversubscription of over 50 times. The market analysts attributed huge success of these PSU IPOs to their attractive valuations which left sufficient room for investors to make listing gains while those private sector IPOs like A2Z Maintenance performed poorly post-listing owing to their overstretched valuations. Besides, the recent volatility in market over the concerns related to sovereign debt crisis in some of the European economies and fragile recovery in developed economies like the US have also been blamed for overall poor post-listing performances of majority of these IPOs. Maybe, the prospective issuers may draw a lesson or two from the experiences of 2010.
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