Indian IPO with high FII holding are in some trouble now, as most foreign investors are redusing their exposer to compensate their losses in the US and other Asian Market. Earlier, small investors were investing in the companies, in which the 'bigger bulls' were buying as they were considered to have lot of staying power. But the current market turmoil has proven all these wrong.
An ETIG analysis of all 126 IPOs since January '08 shows that FIIs have been selling hastily to save their capital. In fact in some IPOs, promoters and mutual funds are also offloading their positions and cutting losses. Reliance Power and Cairn India were one of the biggest IPOs in the recent past, which saw decline in promoter holding. Smaller companies even the publicly held companies, which recently approached the capital market, have seen the similar fate.
If things were to continue the same way, the time will come very soon when the small investor community would be wiped out from the Indian equity market.
No comments:
Post a Comment