As many as four companies that debuted on the domestic stock markets this financial year are trading above their issue price giving big returns to investors, an analysis shows.
Among the new listings in FY15, amusement park operator Wonderla Holidays is the biggest gainer with its stock reflecting a gain of over two-fold against its issue price Rs 125 per share.
Wonderla Holidays had surged 28 per cent on its debut in May after its initial public offer (IPO) of shares in April was subscribed 38 times.
It is followed by Snowman Logistics, an integrated temperature controlled logistics service provider, which gained 84.14 per cent from its issue price of Rs 47.
Shares of the logistics firm made an impressive market debut in September, surging nearly 70 per cent over the issue price of Rs 47 per share.
Crop protection chemical company Sharda Cropchem has rallied 33.78 per cent as compared to its issue price of Rs 156.
Shares of Sharda Cropchem debuted on September 23 and surged nearly 48 per cent on the same day.
Shemaroo Entertainment made its debut on the stock markets on Tuesday and gained 0.58 per cent from its issue price of Rs 170.
The company is into film and entertainment content business.
According to market participants, most companies listed during this financial year are trading way above their issue price because of bullish investor confidence and a strong stock market.
Market participants have attributed positive market conditions as the reason behind the strong show by these newly listed companies on the stock exchanges.
Rally in the local equity market this year has prompted several companies to line up share sales.
Lavasa Corp, Adlabs Entertainment, GMR Energy, Rashtriya Ispat Nigam Ltd, Sharda Cropchem, Monte Carlo Fashions, Uniparts India, PNC Infratech, C L Educate, Videocon D2H are some of the firms that have filed IPO papers so far this year.
The benchmark Bombay Stock Exchange (BSE) Sensex has gained 4,181.72 points so far this financial year.
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