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Wednesday, July 13, 2011

Lackadaisical listing of Readymade Steel India IPO

As expected, shares of Readymade Steel India made poor listing on the BSE. This stock is not listed on NSE.
The stock got listed at ì  115 against its issue price of ì  108, touched the high of 115.7, remained in tight trading range for some time and then fell abruptly.
By the time of this write-up, stock was trading at ì  79.55 that is at 26 % discount to its issue price of ì 108.

BSE Plus Chart

Besides poor fundamentals ,this issue was  small and was to list on BSE only , I had advised my readers to categorically avoid this issue in Readymade Steel IPO Analysis Report.
Not only readymade steel but other issues with poor fundamentals like Timbor Home, VMS Industries, Birla Pacific Medspa Limited etc.,investors have lost their invested capital.
In such IPO’s, share price is artificially propped by promoter-operator nexus to lure gullible investors to invest and when investors get in, operators desert such stocks resulting in the steep price fall.


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