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India Junk IPO Market : Texmo Pipes seems a classic case of “Pump and Dump”

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I have been wondering whether the rash of low quality IPOs in the Indian markets is the sign of a market top. There have been numerous IPOs with extremely poor fundamentals in the recent 3 months.Most of these companies fell on the first day of listing while other listings increased for some time before eventually falling much below their listing price, leading to huge losses for investors. No wonder retail investors are staying far away from such low quality issues. IMHO Texmo Pipes one of the IPOs to happen 3 months ago seems to follow a classic case of “pump and dump”.This listing rose quite a lot after listing but eventually fell.I think these offerings have a low float making it easy for someone to manipulate the stock prices if they want to .The stock market regulator seems oblivious to the problems created by the poor quality of such issues despite the detrimental effect it has on other quality companies trying to raise capital from the markets.It is “caveat emperor” in the case of buyers of IPOs.

Texmo Pipes losses 60% in 2 months since debut – MoneyControl

Texmo Pipes losses 60% in 2 months since debut. The stock hit the market on March 10 with  issue price of Rs 90 per share. The company touched its 52 week high Rs 162.80 on 17 Mar, 2010.

Texmo Pipes has touched a 52 week low of Rs 49.55. Texmo Pipes has touched an intraday high of Rs 53.90 and an intraday low of Rs 49.55. At 15:07 hrs the share was quoting at Rs 52.50, up Rs 0.85, or 1.65%.

It was trading with volumes of 135,871 shares, compared to its 5-day and 30-day average of 75,850 and 403,586 shares. Yesterday the share closed down 4.97% or Rs 2.70 at Rs 51.65.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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