Initial Public Offerings flop as investors lose millions of dollars in India – India Inc. scared of mandatory 25% minimum public shareholding
Prativa Razdhan
Mar. 10, 2008

India Initial Public Offerings (IPOs) are faltering at an alarming rate. Investors have lost around Rs 3,800 crore so far as 17 of the 20 IPOs listed during the current calendar year are trading at deep discounts.

Typical of bear market, the IPOs are showing vulnerability. For example, Reliance Power and Future Capital Holdings are trading at 35 per cent below their issue price.

Taking the clue from the market, India Inc. (Corporate India) is reluctant to accept a 25 per cent minimum public shareholding for all listed companies as proposed by a recent finance ministry discussion paper.

The problems related to IPOs have scared the Indian corporate executives.

Initial Public Offerings flop as investors lose millions of dollars in India – India Inc. scared of mandatory 25% minimum public shareholding
Prativa Razdhan
India Initial Public Offerings (IPOs) are faltering at an alarming rate. Investors have lost around Rs 3,800 crore so far as 17 of the 20 IPOs listed during the current calendar year are trading at deep discounts.
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