The Hindu Business Line : Challenging times for IPOs issued after meltdown

Mumbai, Jan. 24 The stock market meltdown hasn’t affected the smaller public offers that have hit markets after the meltdown so far but the real challenge would be to see retail investors’ response to the multi-billion rupees IPOs of Emaar MGF and Wockhardt Hospitals.

The third biggest Indian IPO of Dubai-based real estate and construction company Emaar MGF aims to raise Rs 7,080 crore and has Rs 2,100-crore worth of shares for the retail investors. The Emaar IPO opens on February 1.

The Wockhardt Hospitals’ Rs 800 crore and IRB Infrastructure Developers’ Rs 1,300 crore public offers, that open on January 31, would also have to be watched from the point of view of retail investors’ response.

QIB quota push

The retail investors haven’t shown much interest in the IPOs that have concluded after the market meltdown and the smaller IPOs have just managed to get oversubscribed based largely on their Qualified Institutional Buyers Quota getting oversubscribed.

J Kumar Infra Projects’ Rs 140 crore managed to get subscribed by two times as it closed on Wednesday.

Cords Cable Industries' Rs 50 crore initial public offer that closed on Thursday received good response in adverse secondary market conditions and was subscribed by five times. It was too early to comment on the two other public offerings on currently as they had opened on Thursday and still had three days to get investor response to their offer. Going by the first day's response, OnMobile Global - that aims to raise Rs 450 crore - had received 0.53 per cent subscription and KNR Constructions - aiming to raise Rs 140 plus crore - had received 0.09 per cent subscription thus far.

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