Most of the brokers had an avoid on the Samvardhana Motherson IPO due to its stiff pricing. The company has fixed a price band of Rs 113-118 for its IPO.
In fact, stiff pricing has been one of the reasons why investors have lost money in IPOs over the last few years.
In fact, on a quick analysis of the IPO market in 2011-2012, investors have lost money in most of the stocks at the current market price.
Muthoot Finance, L&T Finance Holdings, Paramount Print, Future Ventures, Taksheel Solutions are some of the shares in which investors lost money last fiscal year. More recently, investors have lost money in the government owned NBCC stock, which is currently traded way below its offer price.