NEW DELHI, July 6: More than half of the new entrants to the stock market so far this year are trading well above their issue price, giving investors returns of up to two times.
Out of 11 companies that came out with their IPOs this year, seven have registered smart gains against the price at which they had issued shares to investors, an analysis of the stock performance of the newly-listed firms showed.
The rest four companies have however failed to attract investors and are quoting below their issue price.
Microfinance player Ujjivan Financial Services which made stock market debut in May has seen the steepest rally in its share price and is trading about two times higher than the IPO price. Its IPO was oversubscribed nearly 41 times.
Both Equitas Holdings and Infibeam Incorporation that were listed in April, have given smart returns to their investors, soaring about 71 per cent and 62 per cent, respectively.
Similarly, Parag Milk Foods shares have jumped 40.58 per cent, TeamLease Services climbed 29.38 per cent and Thyrocare Technologies zoomed 27 per cent.
In the case of Mahanagar Gas, its shares have jumped 22.92 per cent, as against the issue price.
In stark contrast, four companies — Precision Camshafts, Quick Heal Technologies, HealthCare Global Enterprises and Bharat Wire Ropes — have failed to stay afloat.
Precision Camshafts, the first initial share sale of this year, has seen its shares plummet by over 31 per cent.
Shares of HealthCare Global Enterprises have lost 13 per cent, Quick Heal Technologies is down 12.36 per cent and Bharat Wire Ropes (2.66 per cent).
Besides, staffing firm Quess Corp which concluded its IPO earlier this month is yet to make its stock market debut.
(PTI)
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