The initial public offering (IPO) euphoria seen a month ago has been blown away by the winds of global change with secondary markets jittery investments in new issues are drying up. The slowdown is visible across all IPO sizes whether it is a large issue like Emaar MGF or a smaller one like Wockhardt Hospital. IRB Infrastructure IPO closed on Tuesday and was subscribed 4.3 times. Tulsi Extrusions was subscribed by 2.06 times and response to even the Emaar MGF IPO was lukewarm. The Reliance-Power IPO was over subscribed 73 times, Future Capital by 133.44 times and BGR Energy''s IPO was over subscribed 119.54 times.
When sentiments turn suddenly nothing not even lower prices seem to be pulling in investors. However, investment banking sources say that Emaar MGF has slashed its IPO price band for the second time while extending the IPO which was supposed to close on Wednesday till Monday. The Godrej Group which has planned an IPO for its subsidiary Godrej properties is waiting for sentiments to turn positive and not rush into an IPO in February.
When sentiments turn suddenly nothing not even lower prices seem to be pulling in investors. However, investment banking sources say that Emaar MGF has slashed its IPO price band for the second time while extending the IPO which was supposed to close on Wednesday till Monday. The Godrej Group which has planned an IPO for its subsidiary Godrej properties is waiting for sentiments to turn positive and not rush into an IPO in February.
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