Wockhardt Hospitals & Emaar MGF cut IPO Prices: Finance Trading Times

Wockhardt Hospitals & Emaar MGF cut IPO Prices

The market is setting more and more examples everyday about how everything depends upon the market situation and how helpless an investor as well as the big companies become when the timing is bad.

After so many stop-payments of cheques for Reliance Power IPO and so much speculation going on about the listing price of Reliance Power IPO – expectations generated from Grey market trading prices of Reliance Power IPO shares – it’ the turn of other companies to feel the heat in the IPO business.

In my review of Reliance power IPO, I had clearly mentioned the possible dangers of companies overpricing the stocks following the euphoria they see by the investors in the stock market. However, when things start to go from bad to worse, the same companies as well as the investors wake up to the senses, finally falling victims to the stock market timings.

The latest news to add to this IPO business is that two major IPO’s - Wockhardt Hospitals& Emaar MGF have slashed down their IPO prices significantly.

Wockhardt Hospitals Limited today said that it has lowered the price band of its initial public offering to Rs 225-260 per equity share.

The revision has been done in the light of current market conditions, the company said in a press release issued on Thursday.

The company had earlier fixed the price band for its IPO at between Rs 280-310 per equity share. The issue opens on Friday and closes on February 5.

Initially, the trade analysts were already of the view that the company has overpriced its IPO.

Other news is about EMAAR MGF:

Emaar MGF Land, which had planned to raise up to $1.8 billion in an initial public share offer in India, has cut its offer price a day before opening, becoming the second company to trim its issue because of market volatility.

The company said on Thursday the IPO price range, initially set at 610 rupees to 690 rupees ($15.50 to $17.50) per share, would be reduced to 540 rupees to 630 rupees ($13.7 to $16), cutting the maximum it can raise to $1.64 billion rupees.

What has gone wrong with these 2 companies? Have they lost their business or values or research or market in just past 1 month? No, it’s all dependent upon the market situation. The timing is bad, so is the anxiety of the investors. Everyone falls victim to market timings and the past month has proved to be a typical case of it. Nothing is certain, you apply for an IPO just 10 days back, within these 10 days, things turn from good to bad to worse. You can only observe the so called good company becoming a bad company (in stock market timings) or loosing significant value.

Markets give returns only in the long run. Today is the listing of Future Group Holding IPO. I hope the listing price of Future Group Holdings IPO is good enough to keep the investors faith. Wishing all the subscribers the very best of luck.
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