8/12/2019 4IPOs Fail to Live Up to Their Price - ET Dt. 16-04-13

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IPOs Fail to Live Up to Their Price ET dt. 16-04-13

Two-thirds of cos listed in 6 years now trade below adjusted offer price; power, realty farebadly; FMCG the best

BAKUL CHUGAN TONGIA ET INTELLIGENCE GROUP

Two out of three of the 2!-odd co"panies that went public o#er the past si$ years now trade atleast %&' lower than their adjusted offer price, or the price offered at the ti"e of the ()*

adjusted for stoc+ splits, rihts or bonus issues The reasons #ary fro" slowdown of the econo"y

to policy loja" to hue debt pileup The list includes co"panies li+e .eliance )ower, /0F,1dani )ower, /(0, /3 .ealty, 45 7nery, 7delweiss Financial 5er#ices, 4aypee (nfratec,

8)C, M*(0 and (ndiabulls )ower, with their stoc+s now tradin at half the adjusted offer

price, accordin to an 7T(G analysis Most of the laards who launched their ()*s at a ti"ewhen the econo"y was rowin at o#er 9&' belon to the power and real estate sectors The

capital intensi#e power sector has been facin a s:ueee in cash flows owin to issues related to

tariffs, fuel a#ailability, input costs, waes, and delays due to en#iron"ental hurdles The failureof ()*s should be #iewed in the conte$t of the lac+lustre e:uity "ar+et perfor"ance durin the

past few years, says 1nand 5hah, C(*, 38) )aribas Mutual Fund 1part fro" poor re#enue

#isibility, what is holdin bac+ in#estors is the hue debt on the boo+s of the power co"panies

1dani )ower, for instance, had a debt of

8/12/2019 4IPOs Fail to Live Up to Their Price - ET Dt. 16-04-13

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8/12/2019 4IPOs Fail to Live Up to Their Price - ET Dt. 16-04-13

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