Indian IPOs in 2010 and 2011 : Great Wealth Destroyers !

I was amused,annoyed and angered when I read two recent Press Articles on IPOs…both featured in the Financial Express

The First stated how SEBI is planning to bring back Retail Investors to IPOs by reducing listing day from 15 to three ! Sebi to help bring small investors back to IPOs … So now small investors can die earlier !…..what about the Quality of Companies,rather the lack of it !?….Bring back the Controller of Capital Issues,I say !  

The Second article was an interview of the Chairman of the Association of Merchant Bankers,Mr Sanjay Sharma.He is the Head of Equities at Deutsche Equities,India … Blame market, not pricing, for IPO woes he asserts !…Good Lord !…by his logic Aster Silicates and Tirupati Inks which have eroded over 85%  (see List Below) should now be viewed as Potential Multibaggers and not Multishredders !

110 IPOs have come in 2010 and 2011….There has been an erosion in the Share Price from the IPO Price in three out of four issues with 84 Scrips quoting in the Red

Have a look at the TOP TEN IPO LOSERS List below…Price Erosion is from 82% to 89%….All issues ,except D B Realty, has seen strong Retail participation with high levels of oversubscription….allottees have been stripped violently and have been left with just some money to catch the bus home !

Now with SEBI trying to reduce the Listing Day to just Three Days from the Date of IPO Close,retail investors can hope to die quicker….It’s a Game where the Winner is the one who has lost the most in the shortest possible time  too in many cases !

TOP TEN IPO LOSERS : WEALTH DESTROYERS IN 2010 & 2011

Company

IPO PRICE (Rs)

Price
14/11/2011

(Rs)

%
Erosion

Issue Size (Rs Cr)

Sub-
scribed Times

Qualified Instit-
utions

Sub-
scribed Times Retail

Aster Silicates Ltd

118

13

(89)

53

4.68

0.0

7.4

D B Realty Ltd

468

61

(87)

1500

2.63

4.5

0.4

Tirupati Inks Ltd

43

6

(86)

52

9.20

1.8

12.6

Bharatiya Global Infomedia Ltd

82

12

(85)

55

1.47

0.0

5.1

RDB Rasayans Ltd

79

12

(85)

36

1.45

0.0

4.0

SKS Microfinance Ltd

985

150

(85)

1629

11.44

20.4

2.8

Taksheel Solutions Ltd

150

23

(85)

83

2.95

0.2

6.2

Cantabil Retail India Ltd

135

22

(84)

105

1.98

1.7

2.6

Sea TV Network Ltd

100

17

(83)

50

10.51

1.7

7.4

Syncom Healthcare Ltd

75

13

(82)

56

4.86

1.0

6.2

Go to  http://www.growthavenues.com/index.php?option=com_content&view=article&id=1773&Itemid= For a Full Picture by me ,with Standpoint,Performance,Subscription ,Listing Day Price Acrobatics and % Price Movements subsequently of all the 110 Companies that came out with an IPO in 2010 and 2011