Investors hit pot of gold in IPO offerings

If you had received allotment of 100 shares in the IPO of Dishman Pharma — which made its debut today — you would have been riche...

If you had received allotment of 100 shares in the IPO of Dishman Pharma — which made its debut today — you would have been richer by Rs 36,700 on Thursday. This is because your investment of Rs 17,500 in 100 shares would have become Rs 54,200 on the first day itself.

Most of the companies which came out IPOs — except for one or two exceptions — are now quoting at a huge premium on the stock exchanges. ‘‘Investors have struck a goldmine in the IPO market. Unlike the earlier boom periods, IPO investors have made money this time,’’ said BSE dealer Pawan Dharnidharka.

Dishman, a Gujarat-based pharma firm, made a sparkling debut on the BSE at the Rs 330 level. In fact, the stock surged during the course of the trading session. The stock settled the day at Rs 542 — after touching a high of Rs 593.70. On the National Stock Exchange, NSE, the stock closed at a high Rs 512, attracting a huge 209 pc premium to the public issue price of Rs 175. Nearly 48 lakh shares changed hands in the counter on BSE.

Dishman’s debut comes at a time when public sector companies like ONGC and GAIL which came out with mega public offerings also shot up in the market recently. ONGC which offered its shares at Rs 750 per share in the mega issue is now quoted at Rs 862 on the stock exchange. GAIL which priced its shares at Rs 185 in the mega offering is now quoted at Rs 238 on the BSE. ICICI Bank which priced its share at Rs 280 is now quoted at Rs 298 on the exchanges.

Dishman is the third such company to sparkle on listing after two companies biotech major Biocon and power trading firm Power Trading Corporation of India (PTCIL) witnessed frenzied investors’ buying on their listing day. Biocon which offered the shares at Rs 315 has now appreciated by 103 pc to Rs 640 level.

Power Trading stock surged by 234 pc to Rs 53.40 after the company was listed on April 7. Biocon’s market capitalisation has shot up from Rs 4843 crore to Rs 6409 crore after listing.