Six firms on BSE give -ve returns

According to an analysis based on data available with Bombay Stock Exchange, all six companies, including gold financing firm Muthoot Finance and Kishore Biyani’s Future Ventures India, which hit the secondary market in 2011-12 are attracting negative returns in the range of 10-70 per cent.

Market analysts are of the view that the companies listed during the current financial year are trading way below their issue price because of aggressive pricing issue.

Among initial public offers (IPO) listed during the current financial year, Shilpi Cable Technologies attracted maximum negative returns to investors as it is down by 70 per cent over its issue price of Rs 69, followed by Servalakshmi Paper which plunged 54 per cent from its issue price of Rs 29.

Further, Innoventive Industries shed 26.28 per cent vis-a-vis issue price of Rs 117, Paramount Printpackaging tumbled 19.42 per cent from its issue price of Rs 35, Future Venture India is down 17.5 per cent from its issue price of Rs 10 and and Muthoot Finance is down 9.6 per cent over its issue price of Rs 175. Interestingly, initial public offer (IPO) of speciality chemical maker Galaxy Surfactants was withdrawn by its promoter because of poor response.

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