There are reports that Mr Ketan Parekh, known to be a "godfather" for media stocks, has been allegedly having a hand in the GTB price rigging. The former BSE president, Anand Rathi, is entangled in the tapes controversy, which is being probed by the Securities and Exchange Board of India (Sebi).

On the controversy came to light recently Mr Rathi quit from the post of president of the exchange.

Of the five IPOs, Balaji Telefilms and Mukta arts were lead managed by Triumph, while HCL Technologies and AKSH Optifibre from the software sector were lead managed by Anand Rathi Securities.

And the due diligence for the controversial IPO of Tips Industries was done by both.

Investors seems to have turned sceptical about these stocks in the wake of media spotlight on these alleged controversies.

From the time of their debut in the stock market till sometime ago, they were considered to be darlings of investors and the most sought after stocks on the bourses. Currently, these stocks are not only quoted much below their recent peak prices, but also the traded volumes on the Bombay Stock exchange (BSE) have come down drastically. As the investors sentiment towards these stocks turns negative, prospective issuers of media and entertainment stocks may find it difficult to push their issues through.

Sharp decline in stock prices and liquidity problems in the post-budget period have plagued these stocks. Even though these issues were claimed to be heavily oversubscribed during their primary market avatar, a look at their offer price, listing price, initial high traded volumes and compared with those of current prices along with low traded volumes, portrays a different picture. The stocks are almost at the ebbs of late.

Among media and entertainment stocks which were issued at a huge premium, except Balaji Telefilms, the other two are not only quoted below their offer price, but also there is a huge drop in traded volumes. For Instance, Mukta Arts, which was listed at a huge premium and having as many as 11 lakh equity shares in the initial days of listing, is currently traded at a discount to with volumes being as low as 17,000 equity shares.