Just Uploaded a few days ago a Report on IPO Gradings on www.jsalphaa.com
Are IPO Gradings Misleading in the Initial Public Offers (IPOs) ? ~ Yes !
Of all the 129 Graded IPOs from 2009 to 2012,81 are currently quoted below IPO Offer Price
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Top View of Graded 129 IPOs |
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Grade ↓ |
Grade Wise |
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|
No of Companies whose Share Price is Up from Offer Price |
No of Companies whose Share Price is Down from Offer Price |
TOTAL Graded IPOs |
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|
1 |
4 |
8 |
12 |
|
|
2 |
9 |
35 |
44 |
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|
3 |
17 |
24 |
41 |
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|
4 |
15 |
13 |
28 |
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|
5 |
3 |
1 |
4 |
|
|
TOTAL |
48 |
81 |
129 |
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Year ↓ |
Year Wise |
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|
No of Companies whose Share Price is Up from Offer Price |
No of Companies whose Share Price is Down from Offer Price |
TOTAL Graded IPOs |
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|
2012 |
8 |
1 |
9 |
|
|
2011 |
15 |
23 |
38 |
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2010 |
17 |
46 |
63 |
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|
2009 |
8 |
11 |
19 |
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|
TOTAL |
48 |
81 |
129 |
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Two Startling Evidence revealed themselves when we observed all the 129 IPOs that were Graded by SEBI Registered Entities to do so ~CRISIL,CARE,ICRA,FITCH or BRICK
Observation 1
IPOs that were graded lowest 1/5 that have become WEALTH CREATORS
4 of the 12 IPOs graded poorly at just 1/5 by one of the SEBI accredited rating agency are actually huge Wealth Creators
Just Look at the Uptrend ! ~Were the Grading Agencies wrong in giving the lowest grading or is there Share Price Manipulation ? ~ if one suspects the Latter how is it that such Manipulation has been sustained for long !
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IPOs that were graded lowest 1/5 that have become WEALTH CREATORS |
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Listed Company |
Issue Closing Date |
Graded a Poor 1 by |
No. Of times Oversubscribed |
Offer Price Rs |
CMP Rs |
Up Trend % |
|
Onelife Capital Advisors Ltd |
04-10-2011 |
CARE |
1.51 |
110 |
721 |
555 |
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VKS Projects Ltd |
04-07-2012 |
CRISIL |
1.02 |
55 |
218 |
296 |
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Sudar Industries Ltd |
24-02-2011 |
CRISIL |
1.30 |
77 |
168 |
118 |
|
Olympic Cards Ltd |
13-03-2012 |
CRISIL |
0.99 |
30 |
59 |
97 |
- Observation 2
- IPOs that were graded highest at 4/5 or 5/5 have become WEALTH DESTROYERS
14 of the 32 IPOs graded high at 4 or 5 between 2009 to 2012 have been Wealth Destroyers !
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IPOs that were graded highest at 4 or 5/5 that have become WEALTH DESTROYERS |
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Listed Company |
Issue Closing Date |
Graded by |
No. Of times Oversubscribed |
Offer Price Rs |
CMP Rs |
Down Trend % |
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A2Z Maintenance & Engineering Services Ltd |
10-12-10 |
CARE |
0.92 |
400 |
40.35 |
-89.91 |
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SKS Microfinance Ltd |
2-8-10 |
CARE |
11.44 |
985 |
155.45 |
-84.22 |
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Orient Green Power Company Ltd |
24-9-10 |
CRISIL |
1.06 |
47 |
11.48 |
-75.57 |
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Tecpro Systems Ltd |
28-9-10 |
CRISIL |
20.26 |
355 |
146.9 |
-58.62 |
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PTC India Financial Services Ltd |
18-3-11 |
CARE & ICRA |
1.51 |
28 |
15.9 |
-43.21 |
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Punjab & Sind Bank |
16-12-10 |
CARE |
50.37 |
120 |
72.05 |
-39.96 |
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Ashoka Buildcon Ltd |
28-9-10 |
CRISIL |
14.65 |
324 |
200 |
-38.27 |
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MOIL Ltd |
1-12-10 |
CARE |
56.16 |
375 |
251.9 |
-32.83 |
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JSW Energy Ltd |
9-12-09 |
CARE |
1.56 |
100 |
71.25 |
-28.75 |
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IL&FS Transportation Networks Ltd |
15-3-10 |
CARE & FITCH |
35.62 |
258 |
197.8 |
-23.33 |
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Cox & Kings Ltd |
20-11-09 |
CARE |
5.64 |
165 |
136.4 |
-17.33 |
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SJVN Ltd |
3-5-10 |
CARE |
6.51 |
26 |
22.55 |
-13.27 |
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Hindustan Media Ventures Ltd |
7-7-10 |
CRISIL |
4.89 |
166 |
148 |
-10.84 |
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Gujarat Pipavav Port Ltd |
26-8-10 |
CRISIL |
18.51 |
46 |
43.7 |
-5.00 |
A2Z was supported in the Primary and Secondary Markets by the well known Investor Rakesh Jhunjhunwala ~ your IPO Investment has eroded 90% in it !
For more details you can access the Free Module SCRIP STANDPOINT on www.jsalphaa.com where this and several other Interesting Reports & Views have been uploaded
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