Sr.No,Year,TotalIPO's , ProfitableIPO's , Loss IPO's , % of ProfitableIPO's
1 2011 9 5 4 55.56
2 2010 71 19 52 26.76
3 2009 53 14 39 26.42
4 2008 89 19 70 21.35
Total 222 57 165 25.68
Above is the summary of my study of IPO’s made since 2008 . This study is based on the assumption that the initial allotee has not sold his shares till today .
Following facts came out from this study
1. 3 out of 4 IPO’s returned loss to the initial applicant .
2. Grading of IPO’s are nothing to do with the returns offered as some of the
IPO’s with grades of 1 returned more than 100 % return to the investors.
Grade 1 means “ company with poor fundamentals”. Examples are Bhagawati
Banquets & Hotels Limited in 2008 and Edserv Softsystems Limited in 2009.
3. Highest return of over 400 % is given by Jubiliant Foodworks Limited who’s IPO
was in 2010
4. Everonn Systems India Limited and Page Industries Limited , both of these
companies has given more than 300 % returns to it’s initial investors
5. Only 20 company’s generated more than 100% returns to it’s initial
investors from a total of 222 IPO’s made Since 2008
6. Eventhough 57 IPO’s were profitable to the initial allotte’s but the
profitability was less than 100% For 37 companies
Conclusion :
Do not invest your hard earned money in IPO’s at the
time of initial issue. You can invest in IPO’s at a much lesser rate
after the listing . Only Promoters are making money from IPO’s. According
to me these Promoters have cheated Indian Investors to the tune of Billions
and Billions and we need another JPC to investigate this cheating .
