A number of PSU IPOs disappointed investors in last 10 years
Majority of initial share sales, or IPOs, that opened in the past ten years have given negative returns despite a dramatic improvement in market sentiment and one of the biggest bull runs in the history of the Indian stock market this decade. Data analysed by media shows that 100 out of 164 IPOs since 2008 are trading below their issue price. Of the remaining stocks that have given positive returns, only 44 companies have given double-digit returns. The benchmark Sensex, on the other hand, has doubled during this period. Infrastructure and real estate stocks lead the list of wealth destroyers with companies such as Gammon Infra, Shriram EPC, DB Realty, Reliance PowerNSE 0.00 %, JaypeeInfratechNSE 4.00 % losing more than 90% of their share value since the IPO. Most of these companies listed during 2008.
Tags : News/Views