Financial Daily from THE HINDU group of publications
Saturday, Jun 15, 2002
Financial Daily from THE HINDU group of publications Saturday, Jun 15, 2002 |
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Markets
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IPOs `Primary market headed for revival' Our Bureau
NEW DELHI, June 14 THE primary market is headed for lot of action during the current financial year, with the Securities and Exchange Board of India (SEBI) Chairman, Mr G.N.Bajpai, today stating that around 200 initial public offerings (IPOs) are likely to hit the market during fiscal 2002-03. "My assessment is that about 200 companies may hit the primary market this year'', Mr Bajpai said at a seminar on `Need for centralised listing and simplification of delisting norms' organised by the Institute of Company Secretaries of India (ICSI). The SEBI Chairman lamented that a large portion of domestic savings of last year had been channelised into instruments that do not generally provide great returns on investments. On the other hand, Indian promoters have been raising funds overseas during the same period through equity instruments. He held that one of the reasons that contributed to the "depressed primary markets'' could be the advent of "free-pricing'' regime. At the same time, Mr Bajpai held that there was no case for review of such a regime in a liberalised environment. "A number of issues that had hit the market in the recent past had very little to offer for the retail investors. The entrepreneurs were keen to maximise their mobilisation efforts and left very little on the table for the retail investors. That trend seems to be changing now'', Mr Bajpai said. On `vanishing companies', he maintained that SEBI and DCA had reconciled the differences between the lists of such firms maintained by both of them. "The Companies might have vanished. But the persons who promoted those companies are very much here. We are taking action on them'', he claimed. In fiscal 2000-01, there were 124 public issues that resulted in mobilisation of Rs 5378.38 crore. The primary market was quite lacklustre in fiscal 2001-02.
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