Wednesday, February 24, 2010

Public offers & retail participation

- Chellamuthu Kuppusamy

Not really sure if many are following the market and hoping for a recovery or repeat of what we saw in 2003-2007. Beginning of bull runs are normally marked with underpriced public offers by the government. Maruti IPO in 2003 was a classical example that heralded a magical bull run.

If that is anything to go by, lukewarm response for the public offer of two state owned companies is paining. Retail portion for NTPC follow-on offer was subscribed 0.16 times and REC 0.22 times.

This is quite a contrast against the overwhelming response for NTPC’s IPO at Rs 62 back in 2004. If we go by the school of thought that low prices quality IPO are the indication of market revival we have miles to travel. Market, on the other hand, keeps everyone guessing.

1 comment:

Owner Financed Homes said...

Public participate in retail items....