Business Daily from THE HINDU group of publications
Wednesday, Feb 20, 2008
ePaper | Mobile/PDA Version

Cross Currency

Group Sites

Home Page - IPOs
Markets - IPOs
Signs of revival in primary market

This week’s IPOs sail through; retail interest subdued

Tania Kishore Jaleel

Mumbai, Feb. 19 After the recent debacle, the IPO market appears to be edging towards a revival, if the subscription numbers to some of the current issues are anything to go by.

The public issue of Rural Electrification Corporation (REC) which opened on Tuesday was fully subscribed within the first 27 minutes.

The issue of Kerala-based V-Guard Industries was subscribed 1.11 times on the second day today. Another IPO – GSS America Infotech which closed on Friday last – was subscribed 1.07 times.

According to analysts, these issues have managed to sail through due to their reasonable pricing as compared to those that bombed recently.

“The current IPOs are priced somewhat on par with their listed peers, while the ones that were cancelled were rather aggressively priced”, said Ms Shahina Mukadam, Head of Research, IDBI Capital Markets.

‘More cautious’

Brokers say that though the current issues have received a good response, it would be premature to say that investor faith has been completely restored. . “ Investors have definitely become more cautious. Retail investors still remain on the sidelines. Investors in general will be comfortable only with IPOs whose valuations are perceived as attractive,” said Mr Nitin A. Khandkar, Senior Vice-President - Research, Keynote Capitals Ltd.

The retail participation in the current issues has been subdued. As per the figures on the NSE, V-Guard has been subscribed only 0.38 times by retail investors and REC 0.07 times.

Related Stories:
What pricked the IPO bubble
Market turmoil triggers IPO market cool-off
REC: Invest at cut-off

More Stories on : IPOs | IPOs

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Clasic Hiring

Stories in this Section
Industry seeks ministry for business outsourcing

Unveil your dream Budget 2008
Budget hopes boost consumer durable stocks
Ranbaxy board okays de-merger of R&D unit
Alternative energy: China taking the wind out of India’s sails
ACC (Rs 789.45): Buy
Ranbaxy R&D spin-off
Day Trading Guide
ABB sustains growth momentum
ABB net up on robust order inflows
Ford to source small car engines from Chennai plant
Bank strike: Conciliatory talks on Friday
Banks told to reschedule poultry loans
Motor pool may end year with profits
Spot rupee slides; dollar sticky in the forwards
A different ball game for cricketers
Signs of revival in primary market
Reliance Power alleges manipulation

BusinessLine E-paper

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line