The current week will be the busiest one in over a decade and a half for the primary market. With domestic equity markets fast approaching their previous peaks, 11 initial public offers (IPOs) are scheduled to raise a total of Rs 3,465.50 crore this week.
According to a report from SMC Global Securities, “The week starting September 20 features 11 IPOs. This will be the busiest week in the Indian primary market history after 1995. Even during the red-hot bull market of 2007, no single week featured 11 IPOs.”
“In February 2007, there was a week that marked 10 IPOs, after which the markets crashed,” said Jagannadham Thunuguntla, equity strategist, SMC Global Securities, adding primary market was a function of secondary markets. “As long as liquidity condition remains intact, I don’t think there will be any problem with the current IPOs,” he said. “Liquidity, which was flooding the secondary market, is set to flood the primary market as well,” said the note.
With robust movement in equities on the back of heavy foreign institutional investments, gains on recent listings are visibly remarkable. The retail participation in the IPOs, too, have been positive.
According to market experts, the primary market in the country has revived. But, they cautioned, in such a liquidity-driven bull run, fundamentals did not matter. “The markets can correct 10-15 per cent any time,” said the equity head of a mid-sized fund house.
| IPOs SCHEDULED THIS WEEK | ||||
| Companies | Open | Close | Issue Size* | Price Band (Rs) |
| Career Point Info | 16-Sep | 21-Sep | 115 | 295-310 |
| Eros International | 17-Sep | 21-Sep | 350 | 158-175 |
| Microsec Financial | 17-Sep | 21-Sep | 147 | 113-118 |
| Orient Green Power | Sep 21 | 24-Sep | 900 | 47-55 |
| Gallant Ispat | 22-Sep | 24-Sep | 40.5 | 50 |
| Cantabil Retail | 22-Sep | 27-Sep | 105 | 127-135 |
| Ramky Infrastructure | 21-Sep | 23-Sep | 530 | 405-468 |
| Electrosteel Steels | 21-Sep | 24-Sep | 285 | 11-Oct |
| VA Tech Wabag | 22-Sep | 27-Sep | 500 | 1230-1310 |
| Tecpro Systems | 23-Sep | 28-Sep | 268 | 340-355 |
| Ashoka Buildcon | 24-Sep | 28-Sep | 225 | 297-324 |
| *In Rs Crore Source: SMC Global Securities | ||||
Markets observers said there was a distinct difference in the market rally of 2007 and 2010. “In 2007, the market movement was marked with euphoria, as people did not expect any correction. However, the current rally is marked with scepticism and anticipates a correction,” said Thunuguntla.
