New Delhi: At a time when the share market is grappled with the global financial crisis, companies with highest ratings are also failing to woo investors. Even the best of the companies, who entered the debt market during the first nine months of the current financial year and had received the highest ratings from agencies, have failed to give return to investors.

Twenty eight companies had issued their Initial Public Offering (IPO) during the period of January to September 2011. Out of them, only L&T had managed the highest ratings by the rating agencies.

But even L&T failed to make a cut and its investors have in fact incurred 6 percent loss on investment.
Three companies, which had got 4th grade rating, procured Rs 1567 crore from the market. But once again, they failed to give return to their investors during the first 9 months in the current financial year.

Investors lost 16 to 22 percent of their investment ever since the three companies got listed in the share market.

Ion contradiction, companies having low ratings managed to give investors a terrific return on their investment.

10 companies getting 2nd level ratings managed to give investors 16.21 percent return on their investment.

The companies like Rushil Décor and Lovable Lingeries have given over 100 percent return to their investors during the period.

The 28 companies which issued IPOs worth Rs 5424 crore during the first 9 months in 2011, their investors had to incur loss of about 10.82 percent on their investment.

JPN/Bureau