Purvankara lists at 365 (ouch!), IISL launches CNX Realty Index
Puravankara Projects Limited (NSE Symbol: PURVA) listed on the NSE this morning. To jog your memory, the correction in Indian markets forced Purvankara to extend its subscription from August 3 to August 8, and drop the price range from Rs 500-525 per share to Rs 400-450 per share. The stock is trading ~375 (versus the issue price of 400), thus unable to hand any gains whatsoever to investors in the IPO.
From 525 to 375: A significant re-adjustment of expectations!
On a related note, India Index Services and Products Limited (IISL) launched the CNX Realty Index, similar to that launched by the BSE last month.
The CNX Realty Index represents about 91.08% and 64.43% of the full market capitalization and aggregate turnover of the last one month for the period August 28, 2007 of the Real estate sector Universe respectively.
The average total traded value for the last six months of all CNX Realty Index constituents is approximately 6.51% of the traded value of all stocks on the NSE. CNX Realty Index constituents represent about 4.48% of the total market capitalization as on August 28, 2007.
Unless we see a bunch of mutual funds and/or ETFs linked to these indices, their use is limited to tracking overall sector performance.
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