Investors in Indian IPOs since January 2008 lost over Rs. 5,000 crore as 26 of the 34 companies that went public were trading at a discount below their issue price by the end of last week. This represents a loss of 31.67% from the total Rs. 16,920 crore raised versus the current market value of Rs. 11,562 crore. Additionally, 5 companies withdrew their IPOs prior to approval and 20 others did not issue shares despite SEBI approval due to market uncertainty.

1. Investors in IPOs lost over Rs 5,000 cr in 2008
New Delhi, Sept 15: Primary market investors have lost more than Rs 5,000 crore with shares of
most of companies, which came out with initial public issue since January, trading at a discount.
Out of 34 IPOs issued this calendar year, 26 of them closed below their issue price last week.
These IPOs have raised Rs 16,920 crore but the current value stands at Rs 11,562 crore. So they
are suffering a loss of 31.67 per cent, said Jagannadham Thunuguntla, Equity Head, NEXGEN
Capitals
Limited.
He said five companies which include JSW Energy, RNS Infrastructure, Ybrant Technologies,
Elysium Pharma and Kamayani Patients Care, with the proposed issue of more than
Rs 4,000 crore, withdrew their IPOs prior to SEBI approval.
In 2008, 20 companies did not tap the primary market despite approval from SEBI due to
uncertainty in the markets.
Shares of eight out of ten companies which got listed on stock markets during second quarter of
the cu