2007 was a MALAMAAL year for investors and record-breaking year for markets. Sensex with a return of 47% outperformed most of the major Asian and other global markets. IPOs were not behind in this race and gave some bumper returns to the investors. Companies raised more than Rs 45,000 crore from capital markets in 2007, which was 80% more than the money raised in 2006.
FIIs were one of the key drivers for the growth shown by the secondary market as well as primary market. FIIs pumped in huge money and invested nearly USD 17 billion. FIIs flow in Indian markets was robust and is expected to remain strong in forthcoming years.
103 companies got listed in 2007, out of which 78 companies gave good returns while the rest remained below issue price. Wealth creators among IPOs had offered more than 250%-750% returns since their listing, which includes Orbit Corp, Everonn Systems, MIC Electronics, GBN, Allied Digital, Vishal Retail etc. Nearly 28 companies gave profits in a band of 100%-250%.
Orbit Corporation, real estate developer, was the star performer of the year, offered over 750% returns in 9 months. The company had raised over Rs 100 crore from its IPO of 91 lakh shares at a price of Rs 110 per share in April.
A fully integrated knowledge management, education and learning solutions company, Everonn Systems was the second topper in the gainers list. It gave hefty gains over 640% in just five months since listing. It had come out with a public issue of 35.71 lakh shares at a price band of Rs 125-140 per share and raised nearly Rs 50 crore.
MIC Electronics, a Hyderabad base player in Light Emitting Diode (LED) display systems, offered over 500% returns since listing in May 2007. The company garnered Rs 76.5 crore from capital markets by issuing 51 lakh shares at Rs 150 per share.
However, 23 companies were still below issue price in the year 2007, viz Broadcast Initiatives, House of Pearl, Vijayeswari, Orient Trimex etc.
Top IPO money collector of the year was DLF, India’s largest real estate company and fourth biggest company by market cap, which garnered more than Rs 9,100 crore and in FPOs, ICICI Bank, India’s second leading bank, mopped up over Rs 10,000 crore (including green shoe option).
Power Grid Corp, India’s major power distribution company, raised nearly Rs 3000 crore by issuing equity of 5,739 lakh shares at Rs 52 per share.
Source: Moneycontrol.com
Tuesday, January 1, 2008
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