[1]With its shares skyrocketing 26 per cent on debut trade, country's largest commodity bourse MCX remains the most successful initial public offering so far in 2012 amid turbulent market conditions.
Out of the five companies that entered the stock market in 2012, just two -- MCX and education services firm MT Educare -- managed to close with gains on the first day of trading.
The rest -- realty company NBCC, jewellery retailer Tribhovandas Bhimji Zaveri and greeting cards maker Olympics Card -- ended the debut trade at a discount compared to their issue prices.
Meanwhile, Speciality Restaurants got listed on the BSE on Wednesday at Rs 153, a premium of over two per cent over its issue price of Rs 150.
Within minutes of listing, its scrip gathered momentum and touched an early high of Rs 160.65, up 7.1 per cent from its issue price.
Reflecting the overall sluggishness market conditions, initial share sales have not been so successful this year and many entities shelved their IPO plans owning to poor investor response.
Apart from market situation, the performance of an IPO on debut is also much dependent on credit ratings as well as the fundamentals of a particular company, according to market experts.
Listed on March 9, shares of Multi-Commodity Exchange (MCX) opened at Rs 1,387 on the BSE -- a premium of 34 per cent compared to the issue price of Rs 1,032.
Even though, the scrip lost its initial momentum, it managed to close with about 26 per cent gain at Rs 1,297.05. On the first day, it even touched the high of Rs 1,420.
Interestingly, MCX shares are trading way below their issue price levels and closed at Rs 893 yesterday on the BSE.
"The commodity bourse clocked a gain of 26 per cent on debut day, mainly due to higher ranking given by credit rating agencies and the company's sound fundamentals," Wellindia Vice President Vivek Negi said.
MT Educare clocked a gain of 13 per cent, with the shares ending the debut day at Rs 90.35 on the BSE. The issue price of the scrip, which got listed in April, was Rs 80.
The three other stock market debuts this year -- NBCC, Tribhovandas Bhimji Zaveri and Olympic Cards -- tumbled in the range of 5 to 8 per cent on the first trading day.
Notwithstanding high expectations, shares of state-run National Buildings Construction Corporation (NBCC) lost 8.44 per cent to close at Rs 97.05. The company, which got listed last month, had the issue price of Rs 106.
Making stock market entry earlier this month, shares of Tribhovandas Bhimji Zaveri, dropped 7.33 per cent to end the day at Rs 111.20 on the BSE. The scrip made the debut with an issue price of Rs 120.
Besides, shares of Olympic Cards settled at Rs 28.50, falling 5 per cent compared to its issue price of Rs 30. The company hit the capital market in March.
"Market has been on sell mode with very little buying interest, which is why the stock like NBCC and TBZ listed below their respective offer prices. However, I think, if the market turns around, the stock will look up as these stocks are fundamentally strong company," Geojit BNP Paribas Research Head Alexander Mathew said.
The BSE 30-share index, Sensex, has slumped significantly since January when it was trading at 17,000 levels. It was trading at 16,333.56 at 1.10 pm on Wednesday.
2012 alone has seen withdrawal of IPOs worth over Rs 1,800 crore. So far, three companies -- packaging materials maker Plastene India, healthcare firm Goodwill Hospital and auto parts manufacturer Samvardhana Motherson Finance -- have withdrawn their proposed initial share sales.
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