Abstract:
In this paper we will provide the picture of
IPO stock market during the last quarter of 2007. It was a very good year for the IPO shareholders. Almost 80% of the IPO stocks were traded at a premium. The public issue of many companies generated profit over their offer prices.
In the late 2007, almost 80% of the IPO stocks had been traded at premiums which geared the primary market investors up.
The total number of IPOs listed in 2007 was 43 from which, on an average, more than 40% return had been generated with respect to their offer prices.
Out of the 43 IPOs, mentioned above, 18 new issues had collected over 100 crores each from the public and 33 had been traded at a premium more than their offer prices. Moreover, out of those 33, nine got doubled than their offer prices.
- Almost 20 public issues made more than 32.6% profit with respect to their offer prices.
- The initial public offers of Omaxe, Vishal Retail, Take Solutions, ICRA, Simplex Projects and Central Bank of India had been subscribed over 50 times.
- DLF's public issue claimed the highest score. It raised Rs 9,188 crore from the public which was succeeded by HDIL who collected Rs 1485 crores through public issue.
- The public issue of the Central Bank of India, Puravankara Projects, Spice Communications and IVR Prime Urban were also able to collect a huge amount from the public.
- The market prices of Allied Digital Services, Vishal Retail, Nitin Fire Protection and Time Technoplast increased more than 100% from their respective issue prices.