The global financial condition and liquidity meltdown along with significant drop in domestic stock market is fading hopes of Indian companies to raise funds. Companies don't want to compromise significantly on their valuations battered over the last couple of trading sessions.
According to a statistics available with Delhi-based research firm Prime Database, there are 28 companies against 22 in August, planning to collectively raise Rs 19,463.91 crore, and their IPOs will lapse as on October 17, 2008. This includes some big names like Reliance Infratel and Power Ventures.
According to Mr Prithvi Haldea, Prime Database MD, "The primary market is totally dependent on secondary market, which is in a terrible state. The demand for new paper is obviously very weak in a market like this. When there are no buyers for already listed stocks which have a proven track record in public domain, why would any one risk his money on new stocks.
No comments:
Post a Comment