Here is an analysis of the IPOs of 2009 ( Source data: - NSE web site).
1. There were 21 IPOs in 2009. ( 20 issues after stability returned and only 1 during the time of uncertainity - Edserv softsystems in Feb) . IPOs are highly dependant on market sentiments driven and this fact proves that.
2. Edserv systems has given a good return and this after getting only a CARE rating of 1!!. So, solely depending on the rating and market sentiments may not help.
3. only 12 out of the 21 IPOS are trading in positive territory as of 21 Jan (Adani and Astec , just above the issue price)
4. All issues that were given a grading of 4 ( 6 issues) by rating agencies are trading in the positive zone.
Grade 3 's - 2 in positive zone out of 8.
Grade 2's - 3 in positive zone out of 4.
Grade 1 's - 1 in positive zone out of 2.
So, there has been no correlation between grading by the agencies and the returns except for the fact that all the issues graded four are in positive zone ( May be the sample is too small :-)).
5. Power and Real estate IPOS have not given any significant return in spite of the hype.(including PSU -NHPC).
We can infer that not all IPOs are money making engines for retail investors. All issues need to be analyzed carefully before you throw in your money. Just depending on a broker's recommendation or a tip or GMP ( grey market premium) or an article on a blog like this :-) wouldn't help. The basic rule is- if you don't understand about an issue or if you are not convinced what you want out of investing in an IPO, Please don't invest. Do your thorough research before you invest your hard earned money.