February turned out to be a month of fall for the Indian equity market. The Sensex lost 8.18 per cent over the month while the Nifty ended down 8.26 per cent from the close of January 31.
01-Mar-2007 •Value Research
February turned out to be a month of fall for the Indian equity market. The Sensex lost 8.18 per cent over the month while the Nifty ended down 8.26 per cent from the close of January 31. In the IPO landscape, it was Global Broadcast News that was at the centre of attraction. Offered at a price of Rs 250, the issue was over subscribed by around 50 times. Since its opening at Rs 417.1 on February 8, Global Broadcast News, the broadcaster of the CNN IBN and IBN7 channels, gained around 130 per cent from its offer price till the end of the month.
Akruti Nirman was another stock that witnessed much investor interest before its listing. The issue was oversubscribed by more than 80 times, the highest among the stocks listed in the month of February. However, the going has not been so smooth for the company. The stock lost more then 22 per cent from its offer price by the end of February, on account of the overall correction in the market and the fall in the real estate stocks.
Other issues that were in demand included PFC, Firstsource Solutions, Redington and Cinemax India among others. The Power Finance Corporation issue, priced at Rs 85, was oversubscribed by over 77 times to get listed at Rs 104. The scrip remained in demand even after its listing to end the month with a gain of 30.2 per cent over its offer price.
Firstsource Solutions also performed well since its listing. The scrip gained more than 22 per cent over its offer price by the month end. The Redington issue was oversubscribed by 43.46 times at an offer price of Rs 113. The scrip gained 33.1 per cent from its offer price by February end.