Three of five IPOs this year trading above the issue price

Three out of total five companies that debuted on the Indian stock market this year have rewarded their shareholders with positive returns and are trading way above their issue price.

Among the new listings this year, Snowman Logistics and Wonderla Holidays are the biggest gainers in terms of returns.

The stock of Snowman Logistics is currently trading with a gain of over two-fold against the issue price of Rs 47.

Snowman is followed by Wonderla Holidays which has also risen by over two-fold from its issue price of Rs 125.

Sharda Cropchem too has attracted good buying interest as the stock is quoting 62.62% higher above its issue price of Rs 156.

Meanwhile, two companies which have given poor returns to IPO investors are Shemaroo Entertainment (down 6.47%) and Monte Carlo Fashions (down 12.55%).

Analysts said that most companies listed during the year are trading way above their issue price because of bullish stock market sentiment and upbeat investor confidence.

The sentiment has received a further boost with overwhelming response, both in terms of over-subscription as well as in terms of listing gains, they said.

The BSE benchmark Sensex has gained 30% so far this year and had scaled its record high of 28,822.37 on November 28.

Experts said the IPO market has not been able to match the bullish sentiment in the overall equity space.

So far in 2014, only five companies came out with IPOs, which together raised about Rs 1,200 crore.