Performance of IPOs in India for 2012

Performance of IPO in India for 2012, IPO in India

Performance of IPOs in India for 2012

Initial public offerings (IPO) in India have been creating wealth for investors. Thought IPOs performance in India for 2011 was very bad, for 2012, IPO’s has yielded good returns to investors. In this article we would be discussing about the performance of IPO in India this year for 2012, which are the companies that have yielded good returns to investors and the companies which yielded losses for the investors.

Performance of IPO in India for 2012

  1. There are 21 companies which have come for IPO in India for 2012 (as on date).
  2. 18 IPO’s have yielded good returns to the investors. They are trading at a price which is higher than the issue price.
  3. 3 IPO’s have yielded losses to the investors. These are trading at below the issue price.
  4. Assuming that an investor has invested Rs 5,000 in each IPO (approx for calculation purpose),
  • the total investment would have been Rs 5,000 x 21 = Rs 105,000.
  • The estimated investment value for him as on date is Rs 154,800 which indicates a profit of Rs 49,800.
  • The profit for the year is 47% on straight computation method. Which investment would provide 47% returns in a year? 

Which are the IPO’s which are have provided good returns to the investors

  1. 2 IPO’s has provided 250% returns – VKS Projects and  Max Alerte Style. Both of them came for IPO in Jul-2012
  2. 3 IPO’s which have doubled the investment: Olympic cards, Monarch Health and Tribhovandas.

Which are the IPO’s which are have provided losses to the investors

  1. Thejo Engineering – The issue price was Rs 402 and current price is Rs 16 which is 96% loss.
  2. RCL Retail – The issue price was Rs 10 and currently trading marginally lower than it.
  3. Tara Jewels: The issue price was Rs 230 and current price is Rs 221 with a loss of 4%.

Complete list of performance of IPOs in India for 2012:

Performance of IPO in India for 2012

Conclusion: Performance of IPO in India for this 2012 year indicates that it has yielded good returns to investors. This does not mean that all IPO’s are good. There are several parameters which needs to be considered before investing in IPO’s. We would cover this as part separate article shortly.

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Suresh
Performance of IPO in India for 2012

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