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India’s Junk IPO Market – Real Estate IPO Nitesh Plunges 6% on Listing

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India has been hit with a wave of extremely low quality IPOs in the recent past . These offerings have extremely poor fundamentals and plunge immediately after listing or become a case of “pump and dump” . Nitesh Estates is not only belongs to theĀ  almost impossible to value “real estate” sector,it has a very poor history of defaults,high debt and red ink.No wonder it plunged 6% on its debut today.

Nitesh Estates plunges 6pc on debut – Economic Times

The Bangalore-based realty firm Nitesh Estates tanked nearly 6 per cent on the BSE over its issue price on the day of its listing today.

Shares of Nitesh settled down 5.68 per cent at Rs 50.95 on the Bombay Stock Exchange, over the issue price of Rs 54. During the day the stock fell by 11 per cent to touch an intra-day low of Rs 48.05. On the NSE the Nitesh counter closed down 5.18 per cent at Rs 51.20.

This is despite the fact that main indices gained nearly half-a-percentage point today and especially the BSE Realty Index was one of the biggest gainers today. A total of 3.80 crore Nitesh shares changed hands on both the bourses.

Meanwhile, despite the poor show, BSE decided to add Nitesh in its IPO Index effective May 17,a BSE statement said.


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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