Entry Barriers Lead To Fall In Public Issues

This and is expected to be even lower in November, says Prithvi Haldea, who manages the Prime database.

According to him, the impact of the markets regulator Securities & Exchange Board of India (Sebi) stipulating entry barriers is now being felt for the first time with the number of public issues in October falling to such an extremely low figure.

Despite dismal market conditions, the number of issues entering the market had continued at high levels in the last few months.

The average number of issues during the period

April-September was 96 per month.

There were 87 issues in September, 86 in August, 99 in July, 127 in June, 73 in May and 105 in April.

 

While a total of 896 offer documents had been filed in the four month January-April period, the same fell to only 293 in the five month May-September period.

Up to October 19 this year, only 17 offer documents had been filed, which, according to Haldea, might lead to a further decline in the number of public issues during the month of November.

The total amount raised through public issues in the month of October, too, touched a dismal low of Rs 316 crore.

This was against Rs 1399 crore in September, Rs 348 crore in August and Rs 1674 crore in July.