Mumbai: Only 12 Indian companies have raised Rs 9400 crore through global depository receipts (GDRs) in 2011 so far, compared with 34 that raised Rs 4510 crore the year-ago period, CRISIL Research said in a note.
Of 40 issues by Indian companies in 2010, four out of every five issues were giving a negative return of 35% as of 15 Sept, the CRISIL note said. In other words, investors have lost money in 85% of the issues.
Most GDRs were trading 40-60% below their offer price.
In percentage terms, the GDR issue of Teledata Technology Solutions is the worst performer as its price as of 15 Sept was 93% below the offer price.
Information technology, media and consumer staples companies were the major underperformers, the note said.
“Volatility and weak performance of Indian equity markets in 2011 have damped investor sentiments. This, coupled with the weak performance of the past GDRs, has made them less attractive to foreign investors,” Majithia added.