{"id":400,"date":"2010-05-20T14:25:14","date_gmt":"2010-05-20T08:55:14","guid":{"rendered":"http:\/\/greenworldinvestor.com\/?p=400"},"modified":"2010-05-20T14:25:14","modified_gmt":"2010-05-20T08:55:14","slug":"sjvn-leaves-nothing-for-ipo-investorstarapur-transformers-falls-more-than-30-since-ipo","status":"publish","type":"post","link":"https:\/\/iiec-india.org\/greenworld\/2010\/05\/20\/sjvn-leaves-nothing-for-ipo-investorstarapur-transformers-falls-more-than-30-since-ipo\/","title":{"rendered":"SJVN leaves Nothing for IPO Investors;Tarapur Transformers falls more than 30% since IPO"},"content":{"rendered":"

SJVN was one decent quality company to offer shares amongst the sea of junk initial public offerings.The government which had faced tepid response to the IPO of its state owned companies earlier in the year tried to leave something on the table for the investors with SJVN.<\/a>But considering the price action today it seems the government has failed to leave even bare crumbs for the SJVN investors (at least till 2 pm).Considering that the Government is planning to list more companies in the current year<\/a> it will have to reconsider its Strategy once again .<\/p>\n

India has seen a raft of IPOs in the past 2-3 months which are\u00a0 of dubious quality and barely manage to get subscribed . <\/a>Tarapur Transformers heads the list of these junk IPOs<\/a>.<\/a> I did not understand why the Tarapur got subscribed at all considering the non existent fundamental reasons .However Indian markets routinely see such junk get listed with help from “friendly circles” .Tarapur has already costs its investors more than 30% in the week since its listed and considering its fundamentals , the investors will have to wait a long time to regain even their capital much less any positive returns.Here is what I wrote while analyzing\u00a0 with Tarapur Transformers from its prospectus<\/p>\n

It is raising around 125 crores at 50 times P\/E and more than 6 times P\/S. This from a company which has negative operating cash flows in the last\u00a0 4 out of the 5 years . Note the other companies in this space have got multiple which are much lower than this stock which has pathetic financial and operational parameters. This sort of valuation is generally reserved for very high growth , high quality companies . The i-bankers of this company \u201cComfort Securities\u201d look equally shady if they are willing to IPO such a company . Guess this is one stock where you can be sure that only vested parties would be buying the stock.No right minded rational investor would even think of putting a paisa into this company. The Rating Company Crisil\u00a0 has at least done a decent job by grading it 1\/5 though I think a negative rating would be more appropriate.<\/p><\/blockquote>\n

Here is a list of some of my postings on the Indian Junk IPO market<\/p>\n

    \n
  1. \n

    Texmo Pipes seems a classic case of \u201cPump and Dump\u201d<\/a><\/h4>\n<\/li>\n
  2. \n

    Tara Health Foods Fails to Get Subscribed<\/a><\/h4>\n<\/li>\n
  3. \n

    Real Estate IPO Nitesh Plunges 6% on Listing<\/a><\/h4>\n<\/li>\n
  4. \n

    Texmo Pipes seems a classic case of \u201cPump and Dump\u201d<\/a><\/h4>\n<\/li>\n
  5. \n

    Cattle Feed Company \u201cTara Health Foods\u201d gets No One to Chew<\/a><\/h4>\n<\/li>\n
  6. \n

    Jaypee Infratech IPO just manages to scrape through at lower end of price band despite Nine I-banks selling it<\/a><\/h4>\n<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    SJVN was one decent quality company to offer shares amongst the sea of junk initial public offerings.The government which had faced tepid response to the IPO [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","content-type":"","footnotes":""},"categories":[86,32,38],"tags":[903,3157,3267],"class_list":["post-400","post","type-post","status-publish","format-standard","hentry","category-energy-indian-capital-markets","category-ipo-indian-capital-markets","category-psu","tag-capital-goods","tag-ipo-indian-capital-markets","tag-junk"],"_links":{"self":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts\/400","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/comments?post=400"}],"version-history":[{"count":0,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts\/400\/revisions"}],"wp:attachment":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/media?parent=400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/categories?post=400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/tags?post=400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}