How are post IPO scrips faring?

07 August 2007

There are a few interesting stocks which have debuted recently in the markets which are around 18-25 per cent off the recent highs. Likewise, many other stocks are either trading below their offer prices or above that, reports CNBC-TV18.

If you take MIC Electronics, which had touched a high of, Rs474 retraced all the way back to Rs350 and is trying to get back again, it''s trading at around Rs370. Same is the case with Vishal Retail which is from a very good industry. It reached a high of Rs800, came all the way back to Rs600 and is now trying to trade above the Rs660 range.

Apart from these there are a few stocks, which are 50 per cent off their issue prices. For eg stocks like Broadcast Initiative, Decolight Ceramics, House of Pearl, Oriental Trimex etc.

These stocks indicate that investors have to be really particular in choosing the IPOs. Even if they are from good sectors like media, Broadcast Initiative was from the media sector, investors have to be very choosy in this flood of IPOS coming their way.

The open offer price of SSI was Rs 208 and it is currently trading at Rs 195.95. So, there is a discount of 5.8 per cent. How is the recent turmoil likely to affect some open offers that are currently underway?

If one looks at the open offers and compare the prices announced earlier, one sees that after the turmoil, the prices of all these stocks have gone down well below the open offer prices.