Cos holding back IPOs, waiting for mkt's mood to turn positive

Uncertain market conditions since mid-January this year has dampened investors' appetitive so much that about 74 firms, including Reliance Infratel and MCX are now holding back their IPOs, that are expected to together raise over Rs 43,000 crore, till good time returns.     

At least 74 companies including Reliance Infratel, NHPC, Oil India, Godrej Properties, Mahindra Holiday Resorts, Essar Power, GMR Energy, ICICI Securities, who were close to making an Initial Public Offer, and would have collectively raised a whopping Rs 43,129 crore are now awaiting for better times, primary market tracking firm Prime Database said.     

Of these, as many as 22 companies, planning to collectively raise Rs 16,539 crore, have allowed their IPO approvals to lapse. Some of these are Jaiprakash Ventures (Rs 4,000 crore), Reliance Infratel (Rs 4,000 crore), UTI Asset Management (Rs 2,000 crore), Acme Telepower (Rs 1,200), MCX (Rs 600 crore) and Vascon Engineers (Rs 350 crore).     

Negative sentiment has gone so high that as many as eight companies, including JSW Energy, collectively planning to raise Rs 4,772 crore, have withdrawn their offer documents since January 2008.     

The negative trend in the primary market was in tune with the movement in the secondary market. The Bombay Stock Exchange benchmark index Sensex has lost as much as 47.72 per cent till July 31, from January 10 when it hit its lifetime high of 21,206.77 points.     

"This is the best time for the government to take lead to revive the primary market. Divestments and offerings from PSUs at attractive prices can pull back investors easily. Once the momentum starts, the sentiments would improve. We have seen this happen in the past; it can happen again," Prime Database Chairman and Managing Director Prithvi Haldea said.