![IPO](http://im.rediff.com/money/2010/nov/ipo1.jpg)
"The recent IPOs have got amazing response from the retail investors, which clearly indicates their confidence in the primary market," Geojit BNP Paribas Financial Services Research head Alex Mathews said.
Besides, Mathews noted, performance of Coal India was like an icing on the cake that marked the comeback of investors' interest in the offers by the state-run firms.
Stock markets, which are facing the heat of political uncertainty over the 2G spectrum scam, have come under pressure as investors are pulling out their money to invest in the primary market.
Primary market is the part of the capital market that deals with the issuance of new securities wherein private companies and public sector institutions can obtain funding through the sale of a new stock or bond issue.
The secondary market is the financial market where previously issued securities and financial instruments such as stock, bonds, options, and futures are bought and sold.
Market analysts opine that private companies are preferring to delay going public, as they are concerned about the space being crowded out by increasing number of initial public offers and follow-on public offers by the state-run firms.
After the spectacular performance of Coal India and PowerGrid's IPO, investors' interest has been diverted towards the state-run
offers, as they expect smart returns from them.
CIL had raised Rs 15,200 crore (Rs 152 billion) through its initial public offer, the biggest issue in the history of the Indian capital market, which was over-subscribed by 15.3 times.
The FPO of Power Grid Corporation of India also received almost 10 times more bids than share on offer.
The offering had got bids for over 818 crore shares against the 84 crore (840 million) shares on offer.
Another public sector unit, Indian Oil Corporation, is expected to launch its follow-on public offer in the third or fourth week of January, which is expected to garner close to Rs 20,000 crore (Rs 200 billion).
The government plans to offload 10 per cent of its equity holding in the state-run refiner through the FPO and an equal stake would be diluted by the company.
Besides IOC, Manganese Ore India Ltd will also come out with its IPO on November 26 while offers of oil majors Oil and Natural Gas Corporation and Indian Oil Corporation will hit markets in the last quarter of this fiscal.
MOIL will sell a total stake of 20 per cent, out of which the Centre's shares will account for 10 per cent of the total equity.