After opening the day in green, share markets in India have continued the momentum and are presently trading above the dotted line. All sectoral indices are trading in green stocks in the capital goods sector and stocks in the bank sector leading the gains.
The BSE Sensex is up by 198 points (up 0.6%) and the NSE Nifty is trading up by 50 points (up 0.5%). Meanwhile, the BSE Mid Cap index is trading up by 0.6%, while the BSE Small Cap index is trading up by 1.2%. The rupee is trading at 73.88 to the US$.
In news from the IPO space. Emami Cement has filed with capital markets regulator to raise Rs 10 billion through an initial public offering (IPO).
The IPO comprises fresh issuance of shares worth Rs 5 billion, besides, an offer of sale of the same size by the company’s existing promoters and shareholders, according to the draft red herring prospectus (DRHP).
The company said net proceeds raised through the issue will be used for repayment of certain indebtedness and for other general corporate purposes.
Emami Cement established an installed manufacturing capacity of 5.60 million metric tonnes per annum (MMTPA) in its two years of commercial operations.
The shares of the company will be listed on both the BSE and NSE. The company said it currently operates three manufacturing plants and is in the process of setting up another plant, which subjects to receipt of necessary approvals, is expected to result in an aggregate installed capacity of 9.30 MMTPA of cement and 3.2 MMTPA of clinker by April 2019.
Speaking of IPOs, what if one had invested in all the IPOs? How have the IPOs performed in 2017? And, have they outperformed the indices?
IPOs Underperform Broad Market Indices
According to an article in Business Standard, an investor who bet on the 33 IPOs of 2017 (on a weighted average basis) has seen the value of investment rise by 17%. However, compared to broad market indices, the underperformance is a bitter disappointment.
