The first-half of this fiscal was disappointing for the equity market, as only Rs 7,622 crore (Rs 76.22 billion) was raised through public issues compared to Rs 9,048 crore (Rs 90.48 billion) during the period last year, a fall of 16 per cent.
However, over 250 IPOs are in pipeline to raise a phenomenal Rs 95,000 crore (Rs 950 billion).
Despite a sustained boom in the secondary market and the general feel-good about IPOs, the first half of 2005-06 has disappointed investors.
According to Prithvi Haldea of Prime, country's premier database on the primary capital market, the amount raised through public issues did not come anywhere close to market expectations so far this year despite huge success of public issues last year.
The biggest disappointment for the primary market has been the lack of divestments by the government, as not a single divestment took place in the current fiscal, in fact, the last divestment was in October 2004 of NTPC.
The pipeline of divestment and PSU offerings continues to become larger by the day yet nothing of it seems to be materialising.
With almost all investment opportunities drying up and the constant lowering of interest rates, the IPO scenario looks very attractive, Haldea said.
Most issues in the past have received healthy over subscription and importantly have provided handsome post-listing gains.
"Over 250 IPOs are in active pipeline and this includes only such companies that have announced their plans in the recent past. These collectively intend to raise a phenomenal Rs 95,000 crore," he said.
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