CHENNAI: Shares of companies that did their IPOs in 2008 crashed badly after the equity markets tanked towards the second half of that year. But there is some good news for IPO investors who stuck on, as most IPO stocks have risen close to 100% from their bottoms in October, recouping a part of the investments.

However, a third of the stocks are less than 50% of their offer price, an analysis of 38 IPO stocks show.

Around 11 IPO stocks including Chemcel Bio-Tech , KNR Constructions, Aishwarya Telecom, Sita Shree Food Products, Manjushree Extrusions, Somi Conveyor Beltings, Kiri Dyes, Niral Cement, Birla Cotsyn, Onmobile Global have as on date delivered more than 100% returns from their October 2008 lows.

Around 10 more IPO stocks such as Future Capital, Sejal Glass, Resurgere Mines, J Kumar Infraprojects, KSK Energy and 20 Microns etc. have returned close to 100% gains in the same period.

However, even after such a stupendous rally, IPO stocks such as Chemcel, KNR Constructions, Sita Shree Food, Manjushree Extrusions, Somi Conveyor Beltings and Birla Cotsyn are nearly half way from their IPO offer prices. Others like Future Capital, Sejal Glass, Resurgere Mines, 20 Microns and Cords Cable Industries are also in the same club.

The improved sentiment in the stock markets and the new government in place could help some stocks to recover as analysts increasingly become bullish over India’s prospects.

“Shifting political winds now give a well-balanced Indian economy a real chance to emerge as Asia’s biggest surprise in the years immediately ahead,” Stephen Roach, Morgan Stanley Asia said.

source: Economictimes

Tags: 100%, Future stock tips, india shares, investors, KNR constructions, Microns, Morgan Stanley, nse bse tips, share market, share market india, stock market india

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