Size didn’t matter when it came to the stock market performance of companies that raised money through initial public offerings (IPOs) in the first half of 2008. Reliance Power Ltd, part of the Reliance-Anil Dhirubhai Ambani Group, raised Rs11,563 crore in January in the biggest IPO this year.
Near the end of June, after the market had been roiled by concerns over record crude oil prices and inflation, the shares sold at Rs450 apiece were muddling along at Rs145.
Hyderabad-based Anu’s Laboratories Ltd raised a fraction of that sum—Rs800 crore—in early June selling shares at Rs210 each and by the end of the month had, according to ‘Bloomberg’ data, delivered a return of more than 76% to investors, making it the best performer among companies that listed in the first half. Indian companies raised Rs16,800 crore through IPOs in the first half, down from Rs19,100 crore a year earlier.