Six cos listed on BSE in FY12 give negative returns of up to 70 percent

Monday, 23 May 2011, 15:30 IST
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Mumbai: As many as six companies that made their debut on BSE in the current fiscal are trading well below their issue price, resulting in significant negative returns for the investors. According to an analysis based on data available with the Bombay Stock Exchange, all the 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. "After getting listed on the bourses, many of the companies are unable to sustain their issue price levels, because of aggressive pricing," CNI Research Head Kishor Ostwal said. He further said, "prices are not set right.
Source: PTI