Aavas Financiers to Garden Reach, volatility spike takes a toll on IPOs

Aavas's Rs 17.3-bn IPO fails to garner full subscription a day after PSU firm Garden Reach extends closing date

The volatility in the secondary market has spilled over to the primary market, with initial public offerings (IPOs) failing to garner desired subscription. On Thursday, the Rs 17.3-billion offering by Rajasthan-based housing finance company Aavas Financiers failed to garner 100 per cent subscription. A day earlier, state-owned Garden Reach Shipbuilders had to cut its issue price and extend the closing day as it managed to reach only two-third subscription mark.

Experts say risk aversion among investors following a sharp drop in stock prices is taking a toll on new issuances. Several IPOs waiting in the wings to come to the