Initial public offerings of companies that do not ha­ve peers listed from their respective

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sectors seem to be doing well post listing.

A look at IPOs of such companies like Coal India, Career Point, Talwalkars Better Value Fitness, VA Tech Wabag and Lovable Lingerie show that they have fared better than IPOs of companies with listed peers, which are now trading at a discount to their offer price.

Two more IPOs of companies without peers in the market opened for subscription on Monday. VMS Industries, which is raising Rs 25 crore, is India’s first ship-breaker from Alang, and Timbor Home, which is the first wooden furniture and modular kitchen company to hit the market, is raising Rs 23 crore. It remains to be seen how these companies perform in the stock market.

Companies without listed peers that have given handsome returns are Talwalkars (80.07 per cent), Coal India (61.32 per cent), Lovable Lingerie (49 per cent) and Career Point (6.12 per cent).

VA Tech Wabag had given a good return after listing and touched a 52-week high of Rs 1,806 in October 2010 against its issue price of Rs 1,310 but now it trades at a discount of 3.32 per cent.

Even Jubilant Foodworks, a fast-food chain, which listed in February last year, has given a handsome return of 473.79 per cent with the stock trading at Rs 832 against the initial public offering price of Rs 145 per share.

R Satish Kumar, senior vice-president at Centrum Capital, said, “Generally businesses unique in concept and having scalable model find lot of favour. Career Point is such a case where it has education as well as coaching and India’s demography on its side.”

“So is Jubilant Foodworks, which is nothing but a master franchise of Domino’s, where the model is scalable. It is yet to reach tier-2 cities and even in urban centres it is yet to reach most of the places,” said Kumar.

However, SKS Microfinance is one company with a unique business that has not gone down well with investors.

The stock has given a negative return of 65.13 per cent at current price, though it was a hit with investors immediately after listing.

On Tuesday, VMS IPO was subscribed 68 per cent as per the data provided by National Stock Exchange.

Timbor Home’s IPO received 40 per cent subscription.