India's record year of initial public offerings hasn't enriched investors the way promoters and private equity firms gained.
Shares of 23 of the 32 companies that have gone public this year either declined or gave low returns since the close on the first day of trading. And the ones that gained the most, listed with no or modest gains. The only outlier: Avenue Supermarts Ltd., the parent of Radhakishan Damani's supermarket chain D-Mart.
Thirty-two companies have raised nearly Rs 50,000 crore from IPOs so far this year, the highest on record. Promoters and shareholders walked away with the bulk of the gains by offloading stakes. What helped was a positive sentiment as domestic investors drove benchmark indices to record highs. Yet, more than 60 percent – 20 companies – gave negative returns since the first-day close till Nov. 15. Nine rose 10-132 percent, while three gained 0-4 percent.
Gainers
Shankara Building Products Ltd., the retailer of home improvement and building products, and shrimp exporter Apex Frozen Foods Ltd. listed at a premium of less than 20 percent to the issue price. The two have more than doubled since the first-day close.
Avenue Supermarts, which opened 102 percent higher on debut, couldn't keep up the momentum. It's still among the best performers.
Tejas Networks Ltd. and PSP Projects Ltd. listed flat or at a discount. They feature among the top five gainers after the debut-day close.
Losers
Book publisher S Chand and Company Ltd. declined the most. It had debuted at a premium. India's largest animal feed maker Godrej Agrovet Ltd. opened 35 percent higher but has since declined over 10 percent.
Cable TV firm GTPL Hathway Ltd. and highway developer Bharat Road Network Ltd. opened flat on debut. They declined after the first close. Tuition services provider CL Educate Ltd. not only listed at a discount but its slide has since continued.
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