New Delhi: In a big jolt for investors who wanted to make maximum profits through Initial Public Offering (IPO), Rs 4000 crore have been wiped out in the wake of prolonged weakness in the capital market.

According to a recent study by SMC Global Securities, out of 39 public issues that hit the market this year, only nine have managed to do a fair business.

The companies, however, managed to attract Rs 14, 112 crore from the investors early this year, but their investment shrank to Rs 10, 014 crore at the end of year.

The market has shown its dismal performance owing to global economic downturn. Presently, 30 companies are trading below their issue price.

The state-owned Power Finance Corporation (PFC) is among the companies that came out as the worst performer in the share market this year. The company had issued its share at Rs 203 which has reduced to Rs 141.90.

Country's largest steel maker Tata Steel has fixed price band of Rs 594-610 a share for its follow-on public offer (FPO) in January this year. But it has come down at just Rs 363.60 per share.

The performance of the companies is more worrisome as the shares of many of the IPOs have come down by 90 percent.

JPN/Bureau