IPOs are back, but only just. Only six companies have filed initial public offer (IPO) draft offer documents with the Securities and Exchange Board of India (SEBI) in the first half of 2009, as against 42 IPOs in the same period of 2008.
Experts say corporates are still jittery in the aftermath of the global financial crisis and the local downturn, which led to the Sensex tumbling last year from the 21,000 levels to around 8,700.
“Only when secondary markets are doing well, the confidence builds in the primary market,” said Prithvi Haldia, Managing Director of Prime Database, which tracks IPOs.
“In such a situation the IPO pricing has to be very competitive and pro-investor,” said Anand Rathi, Chairman of Anand Rathi Financial Services.
Some public offers set to hit the market in around two months are Adani Power, Thinksoft Global Services and Great Eastern Energy Corp.