| The issue assumes importance in the wake of Purvankara Projects reducing its price band in the midst of a public offer. The realty firm was forced to do so as its IPO was not receiving enough response from the investors. |
| To make it more valuable, Puravankara had to reduce the price band from Rs 500-525 to Rs 400-450.According to market sources, its price band was on a higher side earlier. |
| Says, Prithvi Haldea, Prime Database, which tracks primary market offerings, "IPOs can't sail through in a slow market. The upcoming IPOs will have to defer their plans if downward correction phase in the market continues. When the already listed stocks are not doing well, how can we be so sure of one which is on offer." |
| He added, "IPOs also take cues from the pricing of peer group companies. Retail investors will always look at the QIB response and if that's not good, retail also doesn't take interest in an IPO. We have witnessed this scenario in 2006 when markets tanked; IPOs were put on hold for 3 months. Once the market recovers, there is nothing to worry." |
| Though good issues with attractive valuations will continue to draw investors.Sanjay Sinha, CIO, SBI Mutual Fund says, "It is difficult to take a blanket view but it will depend on how attractively the issue is priced. We will have to see the issue by response. We have seen good investor appetite for last few issues. But markets may play a spoilsport if the syndrome continues as primary markets are more active when secondary markets are thriving." |
| Puravankara is the second company to reprice its issue after announcing the band. In 2006, weak market conditions had forced Deccan Aviation to lower the issue price. |
| Industry analysts said a spate of real estate IPOs in the past few months may have lowered the appetite. Realty firms like DLF, HDIL, IVR Prime and Omaxe have together raised Rs 12,000 crore from the capital market. |
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