2009 a mixed year for primary markets

With seven of the 16 initial public offers (IPOs) launched this year trading below their issue prices, 2009 has been a mixed year for primary market investors.

The global economic meltdown and the credit crunch impacted the fund raising plans of India Inc, with just two IPOs — Edserv Softsystems and Mahindra Holidays and Resorts — hitting the market in the first half of the year.

Things, however, improved during July-December with more companies announcing IPO plans and filing draft red herring prospectuses.

A smart recovery in the secondary markets too added to the buoyant sentiment.

From the lows of 8000 in March, the Sensex has nearly doubled till date and is trading around the 17400 levels currently. Compared with the number of IPOs launched last year, it has been quite a subdued and disappointing performance in 2009.

Around 42 companies launched IPOs in 2008, raising nearly 192.35 billion rupees. “There were signs of recovery in 2009.