IPOs trading above issue price

Seven out of eight companies that debuted on Indian stock exchanges this year have given good returns to investors and are trading way above the issue price.

So far in 2015, eight companies have launched initial public offers (IPO), collectively raising Rs 4,000 crore.

Among the new listings this year, transport and logistics firm VRL Logistics has emerged as the most sought after stock.

The shares of VRL Logistics have surged 69.41% against its issue price of Rs 205. The stock is at present trading at Rs 347.30 on the BSE.

VRL is followed by integrated wind energy firm Inox Wind whose shares have given a positive return of 37.1% to its investors. Its shares are currently at Rs 445.60 as compared to the issue price of Rs 325.

Similarly, shares of PNC Infratech gained 12.14%% over the issue price of Rs 378.

Fruit drinks maker Manpasand Beverages, cable TV services provider Ortel Communications, MEP Infrastructure and digital cinema distribution firm UFO Moviez too have rewarded their investors with positive returns.

Shares of theme park operator Adlabs Entertainment, however, are trading way below the issue price of Rs 180. The stock is currently at Rs 162.80, down 9.55% from the issue price.

Market experts said that bullish sentiment in the stock market has helped these new listings. Moreover, enormous response in terms of IPO subscription has also helped the investor sentiment, they added.

After a quiet 2014, IPO market is buzzing again as the number of firms that have got Sebi nod for an IPO since the beginning of the year has gone up to 22.

A total of six IPOs had hit the market in the entire 2014 and together garnered just Rs 1,528 crore.

Meanwhile, the BSE Sensex has gained 963.89 points or 3.5% to 28,463.31 so far this year.