It’s raining IPO’s in Indian Stock Market

Looks like the organizations have not been deterred by the lacklustre performance of the recent IPO’s that hit the market.Indiabulls IPO did not perform well even though it derived huge interest during the IPO stage.NTPC,Oil India and the likes have also not performed as expected.

The robust financial growth and investor confidence has started a continuous slue of new IPO’s hitting the market.The IPO sector is going to witness a lot of action aided by the government’s disinvestment strategy which will see some new companies listing in the market.

Here are a few new IPO’s that are going to hit the market soon.

JSW Energy

Price Band Rs 100-115/sh

Open Date 07-Dec-09

Close Date 09-Dec-09

IPO Grade – 4

Godrej Properties

Price Band Rs 490-530/sh

Open Date 09-Dec-09

Close Date 11-Dec-09

IPO Grade – 4

There are many more in the offering with a lot of companies receiving approval from SEBI. Nilesh Estates has plans to raise over 450 crores via IPO.Tarapur Transformers has filed DRHP with SEBI to raise around 55-60 crore.United Bank has also received the nod to raise capital via the IPO

The market sentiment has definitely improved with buying interest visible among the investors.The Stock Markets have been doing reasonably well with BSE Sensex holding around 16-17k levels.

But, the question i have Has The Investor Appetite increased to invest in IPO and hold it for long enough.The past few IPO performances tell a sad story.Even with the new IPO’s getting oversubscribed , almost all the stocks faced selling pressure on the very first day of listing and a few even ended below the opening price.

With so many IPO’s in the offering , the investor would be spoilt for choice to invest in IPO.But, it will still take sometime for this IPO flood to sustain in the long term and hold its ground after listing.

What are your thoughts on the recent performances of the IPO? Do you think investors will be interested in the upcoming IPO’s .

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