Time not ripe for IPOs: Assocham

Domestic IPO market growing at an CAGR of 20 per cent during 2003-07 may fall to 8-10 per cent in remaining period of current fiscal despite vigorous efforts put in by merchant bankers and consultants for making IPOs successful because of adverse market sentiments gaining grounds against them, say the Associated Chambers of Commerce and Industry of India.

At least 74 companies who were close to making an IPOs and collectively raise a huge sum of Rs.44,000 crore are now awaiting better times. For example, in February and August 2008, 25 IPOs were floated in the market that could raise Rs.4345 crore.

 

Given the current situation and exploring other options such as bond, mutual funds and security markets, FIIs and financial institutions including retail investors are gradually withdrawing their subscription from IPOs.