End of the Silly Season ; the Ipo Party On Dalal Street Was Good Till It Lasted.
Summary
A few weeks ago, Ravi Sardana, Senior Vice President, ICICI Securities, was at the receiving end of an earful. A number of promoters who had listed their businesses on the stock exchanges a couple of years ago were livid with the kind of valuations that more recent initial public offerings (IPOs) were getting. A couple of these businessmen also wondered why these companies were listing so early. I don't blame them (for complaining), as the madness in the market was clearly visible a second-rung peer that's tapping the market was getting a higher valuation than the leader in that sector, shrugs Sardana. He also reveals that this was persuading a few businessmen to think about delisting and eventually listing again just to improve their valuations.
It's clearly been a silly season. But then such seasons don't last forever (because they're silly, right?). And when last fortnight the much hyped IPO of Anil Ambani's Reliance Power (RPL) flattered to deceive, it was clear that investors were in no mood to lap up just about everything that came their way. RPL lost 17 per cent on the day of listing, and at the time of writing was still quoting below the offer price (although it did gain 8 per cent after it informed the exchanges about a bonus offer to offset shareholder losses). RPL wasn't the only company to suffer in a volatile market (which is feeling the heat, along with other global markets, from the prospect of a US recession).See the full content of this document
Extract
End of the Silly Season ; the Ipo Party On Dalal Street Was Good Till It Lasted.
In fact, RPL could consider itself lucky that its IPO scraped through. The likes of Emaar MGF, Wockhardt Hospitals and SVEC Construc...
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