Summary
They're Still Standing
Some newly-launched IPOs have bucked the bear market to emerge winners. Are they worth a buy today?See the full content of this document
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Money News
Anand Adhikari
When sometime last December, the world was busy buying perfumes and tiepins to give away as Christmas gifts, one young man in New Delhi was gifting himself and his family a key to great returns. Educomp Solutions had just launched its initial public offer (IPO) at Rs 125 per share, and 32-year-old finance professional Rahul Yadav spent Rs 6,250 to pick up 50 shares. Today, his investment is valued at about Rs 18,750 (current market price: Rs 375), and it's one Christmas gift that nobody is exchanging at the neighbourhood supermarket.At the time, most investors did not have too many expectations from this e-learning solutions provider, and Educomp was lucky to have tapped the market when it was still booming. The market was climbing steadily and established names like Reliance Petroleum, Sun TV and M&M Financial Services were readying to take the plunge.Although nobody knew much about Educomp, especially since it was the first in its business segment to be listed, savvy investors like Yadav liked the business model of this small company (market cap: Rs 600 crore) and backed the dark horse. Today, they are laughing their way to the bank. In fact, Yadav's Educomp investment was worth Rs 23,300 in early May this year, when the stock price skyrocketed to its all-time high of Rs 466 per share.They say a falling market is the true test of any company at the bourses, and there is little doubt that Educomp has passed the test. It is today the best performing of the IPOs launched around that time, with returns of about 200 per cent despite the 15 per cent fall in the BSE Sensex from its May 11 high of 12,671 points.On the one hand, you have several investors mourning heavy losses, as many recently listed high-profile IPOs trade below their offer prices. On the...See the full content of this document
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