The terrible IPOs of 2011

by Manshu on December 16, 2011

in IPO/NFO

2011 has been a particularly bad year for Indian IPOs, and I see that out of the 30 odd IPOs that came out in 2011 – 14 have fallen by more than 50%!

As if that wasn’t bad enough – there are 9 that have fallen by more than 80% and 1 that has fallen by more than 90%!

I don’t have numbers for the IPO bust after the tech bubble when even cement companies started putting infotech in their names and came out with IPOs, but barring that time – I think this must be the most terrible time for Indian IPOs.

Here is how the complete list looks like.

Sr. No. Name of the issue

LTP

Issue Price

Date of Listing

Profit / Loss

1 TAKSHEEL SOLUTIONS LIMITED

14

150

19-Oct-11

-90.67%

2 BHARATIYA GLOBAL INFOMEDIA LIMITED

10

82

28-Jul-11

-87.80%

3 BROOKS LABORATORIES LIMITED

14.15

100

5-Sep-11

-85.85%

4 PARAMOUNT PRINTPACKAGING LIMITED

5.05

35

*

-85.57%

5 ACROPETAL TECHNOLOGIES LIMITED

13.1

90

10-Mar-11

-85.44%

6 SHILPI CABLE TECHNOLOGIES LIMITED

10.15

69

8-Apr-11

-85.29%

7 INDO THAI SECURITIES LIMITED

11

74

2-Nov-11

-85.14%

8 SERVALAKSHMI PAPER LIMITED

4.45

29

12-May-11

-84.66%

9 VASWANI INDUSTRIES LIMITED

9.15

49

24-Oct-11

-81.33%

10 SANGHVI FORGING AND ENGINEERING LTD

24.5

85

*

-71.18%

11 PTC INDIA FINANCIAL SERVICES LIMITED

10.5

28

30-Mar-11

-62.50%

12 M AND B SWITCHGEARS LIMITED

80.9

186

20-Oct-11

-56.51%

13 TIMBOR HOME LIMITED

27.8

63

22-Jun-11

-55.87%

14 SRS LIMITED

36.25

58

16-Sep-11

-37.50%

15 OMKAR SPECIALITY CHEMICALS LIMITED

62.65

98

10-Feb-11

-36.07%

16 INNOVENTIVE INDUSTRIES LIMITED

82

117

13-May-11

-29.91%

17 SUDAR GARMENTS LIMITED

55.7

77

11-Mar-11

-27.66%

18 L&T FINANCE HOLDINGS LIMITED

44.7

52

12-Aug-11

-14.04%

19 MUTHOOT FINANCE LIMITED

157.55

175

6-May-11

-9.97%

20 TD POWER SYSTEMS LIMITED

231

256

8-Sep-11

-9.77%

21 FUTURE VENTURES INDIA LIMITED

9.1

10

10-May-11

-9.00%

22 PG ELECTROPLAST LIMITED

220

210

26-Sep-11

4.76%

23 TREE HOUSE EDUCATION & ACCESSORIES LIMITED

159.9

135

26-Aug-11

18.44%

24 INVENTURE GROWTH AND SECURITIES LTD

154

117

*

31.62%

25 PRAKASH CONSTROWELL LTD

204.9

138

*

48.48%

26 LOVABLE LINGERIE LIMITED

317.5

205

24-Mar-11

54.88%

27 FLEXITUFF INTERNATIONAL LIMITED

241.5

155

19-Oct-11

55.81%

28 AANJANEYA LIFECARE LIMITED

425

234

27-May-11

81.62%

29 RUSHIL DECOR LIMITED

137

72

7-Jul-11

90.28%

30 ONELIFE CAPITAL ADVISORS LIMITED

231

110

17-Oct-11

110.00%

This year should have seen a number of public sector IPOs and FPOs, but we just had the one PFC issue and then due to the depressed market conditions – the government didn’t come out with any other offers, and is now asking PSUs to buyback their own shares in an attempt to meet the Rs. 40,000 crore disinvestment target from there.

The IPO situation has been going bad for some time now, and low quality issues combined with a punting mentality has rendered this  market completely useless for long term investors. I don’t see this situation changing in 2012 either, and while we may see a few good companies here and there, by and large 2012 would probably be more of 2011 as far as IPOs are concerned.

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