Weak Markets Sees Big Drop In Ipos - July 2, 2008

The figures suggest the number of companies going public in the first half of 2008 have fallen by 44 per cent as compared with 2007. And of the 30 companies that listed, almost 85 per cent of them are trading well below their issue price. Once the euphoria goes away, most of the public issues will fall flat on their tracks. Small and retail investors are advised to look into the track record, management and merchant bankers before subscribing to a public issue, said Subramanium Pisupati, President, Ventura Securities. Some players like Emaar MGF, Wockhardt Hospitals withdrew their issues because despite revising the offer price they didn''t get enough investors.Now Birla Cotsyn is launching its IPO and the response so far is slow but the management is keeping an eye on the market. With the current market conditions for me to have the present subscription is great news, said Yash Birla, Co-Chairman, Birla Cotsyn Ltd.