News / 50% of new listed cos ride the bull
Feb 22, 2010

Chennai: It has all the trappings of a 20:20 match to be played on the cricket fields’ world over. But, it may not have grossed the revenues clocked by the latest flicks like My Name is Khan, Avataar or 3 Idiots, on their debut on the silver screen. However, the stake involved in this match, in no way, is a child's play.

This game is played out on a different pitch and the players strictly fall in two broad categories the 'bulls' and the 'bears'. And those who bought the tickets sometimes with a premium to watch the action are the common investors. The only differentiator is the lack of bickering shrouding the other two big-ticket events.

A little behind-the-envelope calculation done by FE shows that the luck had favored the brave even in a choppy market whose direction no analyst is willing to bet with his or her reputation. Out of the eight new companies listed on the Bombay Stock Exchange (BSE) since the turn of this decade, four firms or 50% of the new listings, saw the investors walking back to their banks with all smiles. While some scored a half tonne in terms of returns to investors, others flunk the tough test of the market by slipping below their list price ranging from a low of 4% to a high of about 16% from their listing date from January to February 17, 2010, for which the data has been collated by FE. While the top firms that rocked during the new listing party on BSE includes Jubilant Foodworks, which spiked from its listing price of Rs 161.6 on February 8, 2010, to Rs 241.15 per share as on the close of trade on February 17, 2010, a surge by 50%. The other scrips that cheered the investors include Infinite Computer Solutions, up by 10.15 %, MBL Infrastructure rose by 8% and JSW Energy increased by 7%.

On the other hand, the companies that did not perform will includes Vascon Engineers fell by 16% over the list price of Rs 170 per share, Symcom Healthcare dipped by 8%, Godrej Properties was down by 6% and DB Corporation Ltd fell by 4%. On the National stock Exchange (NSE), out of a total of 22 new listings since January, 2010, 12 stocks or 54% of the new listings gave positive returns to investors while 10 firms burnt a whole on the investors' pocket. Top among the gainers are AML Steel Ltd, which appreciated by a mind boggling 637% from the listing price of Rs 8.1 on February 8, 2010, to Rs 59.7 as on February 17, 2010 , Hindustan Copper rose by 75%, Beardsel Ltd also surged by 71%, Kwality Diary saw a rise by 45% and United Nilgiri Tea Estate went up by 43%.

Major losers on NSE were Info-Drive Software that fell by 29%, Vipul Ltd dipped by 27%, Amarjyothi Spinning also slipped by 11%, Hydro S&S Industries Ltd witnessed a slump of 10% and Syncom Healthcare fell by 8%. The public sector MMTC, which was listed on NSE at a whopping Rs 35,800 on January 8, 2010, has melted by about 3% to close Rs 34,888.45 on February 17, 2010. According to market watchers, the companies operating in booming sectors and have good fundamentals have gained in the market while others with a bleak forecast for the future sank after the listing. "This is applicable to firms operating in different sectors," said an analyst with a local brokerage house who does not wished to be named.

Share this: