The great Indian IPO bazar is set to take off with a slew of big IPOs hitting the market or ready to do so.
The big ticket PSU offerings ONGC, IPCL, GAIL, CMC, IBP and Dredging Corporation of India -- have grabbed the attention, with expectations that retail investors will lap up the discounted offerings, which in turn will help expand the secondary market, adding depth and liquidity.
In this mega PSU IPO circus, a number of relatively smaller IPOs are also in the offing including Bank of Maharashtra, FourSoft, Power Trading Corporation of India and Petronet. The jury is split on how the market will receive the relatively smaller IPOs.
While one section of the market says the smaller IPOs may get buried in between the heavyweights, an equally strong contrary view is that the smaller sized IPOs may just about grab the smaller investor's attention and money.
Rohit Shrivastav, head-research at Sharekhan, says: "The smaller public offerings may actually get a good response because many of then are very good quality companies and the relatively smaller price at which the shares are being offered is attractive to the retail investor."
Jitendra Panda of Motilal Oswal Securities, says: "There is an element of doubt in the investors' mind in the falling markets, with players questioning the pricing of the IPOs and whether they will make money once these shares get listed."
Marketmen say that one indicator of the market priming up for the IPOs is that the secondary markets have witnessed a fall in turnover, with liquidity being drained out by players in anticipation of the IPOs.
"Market participants are cashing out to subscribe to the mega public issues coming in the next one month," says a fund manager.
Retail as well as institutional investors are said to be keenly awaiting the opportunity to participate in these public issues.
