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Mukhesh Ambani's Den Networks Ltd, failed to create any value for the investors.

Those who say Invest for long term in blue chip stocks in share market, they should read this post.

#Den #Networks #Ltd (Rs.49.95) came up with an IPO in October, 2009, with the price band of Rs.195 - 205. Photo: Latestly Hunt

The IPO of Den Networks listed on 24 November, 2009 at the lower band of Rs.195 and closed at the discount of around 16.36%. The Initial Public offer (IPO) was open on October 28, 2009 and closed on October 30, 2009. IPO was oversubscribed by 1.04 times (0.0963 times in retail).

The stock opened at Rs.195 and then rose to Rs.197, before closing at Rs.163.10.

Listing Day Trading Information at BSE

Issue Price: Rs.195.00
Open: Rs.195.00
Low: Rs.149.50
High: Rs.197.00
Last Trade: Rs.163.10
Volume: 7,730,791

Source: http://angelanalyst.com

The promoter's holding is still ~75%, while it is profitable company from the reputed Mukhesh Ambani group. But the current share price of Rs.49.95, is now almost (1/4)th the IPO price.

Interestingly, #Mukhesh #Ambani in March this year decided to sell close to 11.63% stake in Den Networks Ltd at a floor price of Rs.48.5 apiece through an offer for sale (OFS). What an Irony (for the India's richest man)!!

So, did it create any value for the investors during the last 10 years - plus of its existence?

A plain #NO...

Hence, there is no guarantee that blue chips, from the reputed business houses will deliver mind boggling returns in the long term.

Therefore, always take the help of experts in share market, to eke out a consistent return on your investment/s.

Join my Crorepati Scheme, if you have a portfolio Size of Rs.2/3 lakhs.

Comments

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