Pricing IPOs

The editorial, “Caution, IPO ahead” ( Business Line , October 25) rightly points out the importance of the adage, ‘caveat emptor,’ in the SEBI’s decisions. In respect of the IPO bidding, every option should be available to retail bidders to help them understand the issue. In the recent past, retail investors have been left in the dark through indiscriminate pricing. Many have burnt their fingers even in IPOs of public sector companies. The editorial aptly points out that the confidence of retail investors can be rebuilt only through primary market reforms.

There have been apprehensions about the listing patterns. Pricing with only the bullish market in mind has also put investors in a fix. The norms for disqualification of IPOs may see the regulator being dragged to the court. Instead, the regulator could have resorted to investor-friendly steps such as lessening the time lag between closure and allotment/listing, spelling out stipulations for fixing listing price before the issue, etc. As many IPOs are expected in the coming weeks because of a stable secondary market, the SEBI should come out with programmes to revitalise the primary market.

C.P. Velayudhan Nair

Thiruvananthapuram

Prompt payers

This refers to the report, “Poor are ‘more prompt’ in repaying loans” ( Business Line , October 25). No one can dispute that, but our corrupt politicians and big business houses may change the attitude of the poor, who are fed up with the ongoing loot.

People would not have forgotten their gimmicks, such as one party promising cheap loans from nationalised banks and another promising to waive loans if voted to power.

K.V.S Mani

Mumbai

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