The BSNL IPO could be the oil that greases the primary market back into motion. “A catalyst of such sort is required to improve the investor sentiment in the primary market,” said Sudip Bandyopadhyay, CEO, Reliance Money. “If the IPO is priced attractively, it will see a revival of investor
sentiment in the primary market.”
This IPO will help revive investor interest, said Prithvi Haldea, managing director, Prime Database. “PSUs tend to price their IPOs attractively. It (the BSNL IPO) will rope in investors as well as investments.”
At Rs. 20,000 crore, the IPO will bring new challenges to merchant bankers, who are largely optimistic. “It is a great company and disinvestments are welcomed by the investors,” said an investment banker who tracks the sector. “The IPO will be well received and will draw investments.”
But between January 10, 2008 and today, with the market down 27 per cent, investor appetite has crashed. “In a market scenario that prevailed in January 2008, it would have been a cakewalk,” said Aseem Dhru, CEO, HDFC Securities. “The fundamentals for the company are strong with a strong subscriber base, good operational margins and a 3G license already guaranteed. But the bearish market might act against the IPO.”