The 40 global depository receipts issued by Indian companies in 2010 returned a minus 52 per cent on an average as on September 15, says a Crisil study.

According to Crisil analysis, of the 40 global depository receipts (GDRs) issued by Indian companies in 2010, investors have lost money in 85 per cent of the issues, with four out of five issues giving a negative return of 35 per cent or more

Only five companies — Rainbow Paper (148 per cent), Chromatic India (141 per cent) Kemrock Industries (11 per cent) SE investments (seven per cent) and Jindal Cotex (one per cent) — gave positive returns to investors.

The market value of the GDRs issued by Indian companies has decreased 47 per cent to Rs 3,030 crore currently. GDR issuance in 2011 has been hit badly with only 12 companies raising $193 million as on date, against 34 companies raising $976 million in the corresponding period last year.

Indian companies raised Rs 5,680 crore by way of GDRs in 2010 with Bombay Rayon Fashion's Rs 350-crore GDR issue being the largest. GDRs are listed on the Luxembourg Stock Exchange and Indian companies account for 68 per cent of the total listed GDRs. The major underperforming sectors were IT, media and consumer staples.

A depository receipt is a negotiable certificate representing a specific number of shares of a company and traded on the exchange of another country.

The minimum price of a GDR is the higher of the average of weekly high and low (closing price of shares ) in the last two months and the average of weekly high and low (closing price of shares) during the last two weeks preceding the relevant date.

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