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Stock market crash robs shine off new listings

The investors wealth has plummeted more than Rs 7,000 crore in less than 10 days.

india Updated: May 22, 2006 12:15 IST
Press Trust of India
Press Trust of India

Punters who sold their shares in the newly listed Reliance Petroleum Ltd on the first day of its listing must be a happy lot, as the investors wealth has plummeted more than Rs 7,000 crore in less than 10 days from nearly Rs 40,000 crore at the time of listing on May 11.

While the long-term investors might still want to stick with their RPL shareholding, which is still trading above its offer price, the same level of confidence is missing from those who invested in a host of new listings where current prices are quoting below the listing or even offer prices, the market observers said.

RPL closed at Rs 72.75 last week when the benchmark Sensex plummeted more than 1,300 points on back of a record single-day fall of 826 points on Thursday.

While Friday's closing price was 21 per cent above its offer price of Rs 60 per share, it was nearly 29 per cent below the listing price and all-time high of Rs 101.95.

The company's market cap has plunged by Rs 5,715 crore to Rs 32,737.50 crore as on May 19, from Rs 38,452.50 crore on May 11.

Among other high-profile IPOs this year, Bartronics India, Kewal Kiran Clothing, R Systems International, Emkay Share and Stock Brokers, Shivalik Global, Jagaran Prakashan and GVK Power and Infrastructure all ended the last week below their public issue prices.

First Published: May 22, 2006 12:15 IST