Because of the current market scenario - with high growth of GDP numbers, deposit rates moving up, gold and property rates booming - investors have several options to invest in which can spring into double digit returns. These are the possible reasons investors are shying away from primary market.
Of the 15 new issuances this year, eight of them are trading below their issue price. Innoventive Industries, Muthoot Finance, Shilpi Cable Technologies, Acropetal Technologies, PTC Financial and Servalakshmi Paper are some of the recently listed companies that are trading below their issue price.
Innoventive Industries (IIL) has developed into a multi-product engineering company from an auto component provider. It has six facilities in Pune and Silvassa, and services clients in the transportation, farm equipment, oil and gas, and power industries.
Muthoot Finance is the largest financial company which provides loans against gold. The company is a part of the Muthoot Group which is involved in many different businesses, ranging from financial services, health-care, education, plantations, real estate, foreign exchange, information technology, insurance distribution and hospitality.
Shilpi Cable Technologies
It manufactures Radio Frequency (RF) cables. Shilpi Cable Technologies caters to the telecom sector. It"s product portfolio includes many items which are used in telecoms towers and mobile towers.
Founded in 2001, the IT company caters to clients" outsourcing in engineering design services, health-care, and energy, and environment sectors.
PTC India Financial Services (PFS), is promoted by PTC India Ltd (PTC) as a special purpose investment vehicle to provide total financial services to the entities in the entire energy value chain through equity or debt investment to all stages of power projects - in generation, transmission, distribution; fuel sources, fuel related infrastructure like gas pipelines, LNG terminals, ports, equipment manufacturers and EPC contractors etc.
Incorporated in 2005, Servalakshmi Paper engaged in the business of manufacturing Printing & Writing Paper and Newsprint.