Recently listed stocks plunge below offer price

Recently listed stocks plunge below offer price
20 Feb, 2008, 1840 hrs IST, INDIATIMES NEWS NETWORK

MUMBAI: With the bears taking over Dalal Street in recent days, many recent offerings which listed at considerable premium are now trading at a significant discount to their offer prices.

Reliance Power listed at Rs 547.80, premium of 21.73 per cent against the issue price of Rs 450 on Feb 11. But the stock was unable to hold the gains and closed at Rs 372.50 on the same day. The stock hit a low of Rs 332.50 on Feb 13 and high of Rs 599.20 on Feb 11. Today R Power shares closed at Rs 408.20 on BSE.

Similar is the case with many IPOs that listed this month. On Feb 1 Future Capital Holdings listed at Rs 1,044, a premium of 36.47 per cent against the issue price of Rs 765. It closed at Rs 908.20 on the listing day. The stock touched a low of Rs 803 on Feb 14 and high of Rs 1,190 on Feb.7. The stock today closed at Rs 822.55 on BSE.

On Feb 13 Cords Cable listed at Rs 130, discount of 3.7 per cent against the issue price of Rs 135. It closed at Rs 138.30. The stock hit a high of Rs 155.6 on Feb.18 and low of Rs 113 on Feb.13. The stock today closed at Rs 131.85 on BSE.

On Feb 18, KNR Constructions shares listed at Rs 180, premium of 5.88 per cent against the issue price of Rs 170. On the same day KNR received an order worth Rs 205.99 crore from NHAI, in joint venture with Patel Engineering. But this news did little for the stock as it closed at Rs 154.35. The stock hit a low of Rs 147.25 on Feb.19 and high of Rs 199 on Feb.18. Today it closed at Rs 149.60 on BSE.

OnMobile Global listed at Rs 440, its issue price, on Feb 19. The stock hit a low of Rs 421 and high of Rs 579 intraday before closing at Rs 521.90, almost 19 per cent premium to its issue price. The stock today closed at Rs 502.10 on BSE.

Shares of Bang Overseas Wednesday listed at Rs 250 on NSE, a premium of 20.77 per cent to the issue price. It touched a high of Rs 269.90, and the low was Rs 168.55. The stock today closed at Rs 171.80 on BSE.

Shares of Shriram EPC listed today at Rs 320, premium 6.66 per cent against issue price of Rs 300 on the NSE. It has touched a high of Rs 377 and low of Rs 251. The stock today closed at Rs 293.60 on BSE.

However, some companies which listed in January are still trading above their issue price. BGR Energy listed at Rs 801, premium of 66.87 per cent against the issue price of Rs 480 on Jan 3. It closed at Rs 901.30 on the same day. The stock touched a low of Rs 525 on Jan 23 and high of Rs 988 on Jan 23. Today it closed at Rs 502.10 on BSE.

Burnpur Cement listed at Rs 18.45 on Jan 3, a premium of 53.75 per cent against the issue price of Rs 12. It closed at Rs 46.35. The stock hit a high Rs 55.6 on Jan 4 and low of Rs 17.80 on listing day. The stock today closed at Rs 29.20 on BSE.