IPO manipulation is back for sure. Indo Thai Securities hit an intraday high of Rs99 today; two firms belonging to related directors individually picked up 7.50 lakh shares worth Rs5.73 lakh each on the BSE & NSE; they made a combined profit of Rs2.60 crore in a few hours. The regulators remain silent
Yesterday another ‘Grade 2’ IPO, Indo Thai Securities, listed on the NSE (National Stock Exchange) and the BSE (Bombay Stock Exchange). Opening a rupee higher than its issue price of Rs74, the stock fell 69% to close at Rs23, after hitting an intraday high of Rs99 and a low of Rs18.
“Trade with confidence” is the tag line of Indo Thai Securities and two firms run by the related directors certainly did.
Vikabh Securities Pvt ltd run by Bharat Hardattrai Biyani bought 7.50 lakh shares worth Rs5.73 crore on the BSE and Asian Market Securities Pvt Ltd run by Kailash Hardattrai Biyani, put in a similar amount buying the same number of shares on the NSE. And yes, like the M and B Switchgear case (IPO manipulation is back with a bang. Five firms with one director and a profit of nearly Rs9 crore), both firms entered at a price of around Rs76.4 and exited around Rs93.8, mopping up a consolidated profit of Rs2.6 crore in just a matter of a few hours. With the market regulators sleeping, such traders will definitely trade with confidence.
Apparently both the directors are the promoters of Abhinav Capital Services which is listed on the BSE. There has hardly been any trading of the stock since October last year.
Unfortunately for retail investors who put their money in looking to make a substantial profit, they would have severely burnt their fingers. The stock shows no signs of moving up again. And as for M and B Switchgears, since Moneylife had reported (IPO manipulation continues, recent offerings exhibit extreme volatility and five out of seven IPOs listed in October hit their extremes today ) that the scrip had hit its all-time high of Rs390, it has been following a downward trend ever since. The stock closed at Rs180.65 yesterday, down 54%.
Apart from this case, three other IPOs listed last month are trading at 80% below their issue price (See Chart). Whereas Flexituff, Onelife Capital and Prakash Constrowell have managed to muster good gains, but how long these gains would last is the big question. That’s the sorry state of the Indian IPO market.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
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THAT IS THE INDIAN TRAIT!