Gammon Infra: Fears come true
Gammon Infrastructure Projects Ltd (GIPL) listed yesterday at a price of Rs 170 and touched high of Rs 185 before closing the day at Rs 158, well below issue price of Rs 167. The closing price indicates a discount of 5.3% to issue price a price earning (P/E) ratio of 255. With this IPO, the company has made entry in 'flop IPO' hall of fame. Markets are still volatile and may break out in the negative as well (Nightmares for the retail investores as smart players have already exited the counter). Looking forward, next company to get listed in this month is Sita Shree Food Products and Titagarh Wagons . While grey market premium for Sita Shree Food Products is at Rs 6 against issue price of Rs 27-30, Titagarh Wagons appears to be good bet for long term with visible incremental earnings and reasonable (infact discounted) P/E ratio of 24. Its high time companies learn to leave some change on the table for retailers.