Some thoughts on IPOs

This post is to highlight the fact how investors are fooled into investing in IPOs. The basic idea of the post is to show that some of the companies coming up with IPOs in the last 5 years raised more money in their IPOs than their total market cap today. Please have a look at the table:

Company	IPO time	Offered Equity	Times Subscribed	Raised Money	Market Cap Today
Raj Television	February 2007	27.5%	2.36	91.7 Crore	78 Crore
AMD Metplast	February 2007	42.16%	4.88	76.25 Crore	56 Crore
Oriental Trimex	February 2007	64.5	0.95	48 Crore	22 Crore
Evinix Accessories	February 2007	32.71%	3.4	42 Crore	35 Crore
Broadcast Initiatives	February 2007	44.27%	2.36	102.6 Crore	36.5 Crore
Indus Fila	February 2007	25%	1.34	82.35 Crore	50 Crore
Euro Ceramics	February 2007	32.87%	2.86	92.75 Crore	71 Crore
Transwarranty Finance	February 2007	42.86%	1.52	31.2 Crore	19 Crore
Cinemax India	February 2007	31.86%	41.86	138.26 Crore	160 Crore
House of Pearl	February 2007	33.52%	3.67	362.83 Crore	172 Crore
XL Telecom	December 2006	26.07%	8.1	59.35 Crore	80 Crore
Ruchira Papers	November 2006	45.57%	2.53	28.5 Crore	19.5 Crore
Blue Bird	November 2006	25.07%	4.82	92.14 Crore	100 Crore
Global Vectra Helicorp	October 2006	25%	3.53	64.75 Crore	60 Crore
Hov Services	September 2006	32.3%	2.51	81 Crore	89 Crore
Lokesh Machines	May 2006	25.47%	19.37	42 Crore	52 Crore
R Systems	March 2006	32.57%	3.36	110.21 Crore	105 Crore
Uttam Sugar	March 2006	15.53%	4.63	136 Crore	156 Crore
Nitco Tiles	March 2006	44.9%	4.51	184.8 Crore	162 Crore
Nitin Spinners	January 2006	57.14%	16.51	49 Crore	29.5 Crore
Celebrity Fashions	December 2005	25.5%	23.6	81 Crore	35 Crore
Kernex Microsystems	December 2005	34.85%	22.95	99 Crore	105 Crore
Prithvi Information	December 2005	25.17%	15.27	135 Crore	116 Crore
SPL Industries	July 2005	31.03%	28.26	63 Crore	30 Crore

The list is so long my finger pains and I am not including more.

Investors bought fraction of a company at a price and today the whole company is available at a fraction of that price, after two-three years. I don't believe in Efficient Market Hypothesis, so I do believe some of the companies listed above and also some which have not been included are real bargain today. I would see if I find some bargains and list in the next post.