An extremely bearish and nervous secondary market through the year saw 2008 with a very low mobilisation of only Rs. 16,927 crore, representing a fall of 63 per cent as compared to last year.
According to data by Prime, a data base agency and consulting firm, only two issues of over Rs 1,000 crore each compared to six in the preceding year. As many as 22 of the 38 issues were of less than Rs 100 crore, of which as many as 14 were of less than even Rs 50 crore.
The year continued to witness very few small issues; there was only one issue of below Rs 10 crore, quite like 2007, which had just one such issue or in 2006 when there were no such issue.
Significantly, the year witnessed the largest-ever IPO in India — from Reliance Power for Rs 10,123 crore, which single-handedly accounted for 60 per cent of the year’s total mobilisation.
This single issue pushed the average size of public issues to Rs 445 crore in 2008 from Rs 426 crore in 2007. By number of issues also, the performance of the year was worse than last year. Compared to 106 public equity issues in the previous year, 2008 recorded only 38 public issues, registering a 64 per cent decline.
Unlike the preceding year, which had seen the real estate sector cornering 33 per cent of the total mobilisation, the sector had only a 7 per cent share in 2008. Power sector dominated IPO market in terms of size accounting for 65 per cent share through two issues.