After being unsuccessful in 2008 to raise Rs 75,000 crore through initial public offering (IPO) route, over three dozen firms are holding back IPO plans to raise an estimated Rs 75,000 crore or over $15 billion for the right market conditions, which analysts believe is unlikely before the year-end.
The overall size of the IPO backlog from 2008 is incidentally more than four times of the total amount raised during the year through this route and almost equals the cumulative capital raised over the past three years.
The slackening in the primary market was primarily due to the poor response to the post-IPO listings in the secondary market and the slump in the investors’ sentiments due to overall sluggish market conditions.