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IPO market in for a boom, says SEBI chief

The Indian primary capital market is in for a boom with about 200 initial public offerings lined for this financial year, chairman of the Securities and Exchange Board of India G N Bajpai said on Friday.

''The environment for IPOs is changing for better. At least 200 companies are going to raise money in the primary market'', Bajpai said at a seminar organised by the Institute of Company Secretaries of India.

The SEBI said while free pricing could be one of the reasons for the collapse of the primary market, it was not the only reason for the investors shying away from the IPOs.

SEBI would now ensure that only the quality firms come to the market through improving the standard of the intermediaries and setting up of the Central Listing Authority. He said the CLA would check the quality of the issuing firms at the entry level itself.

He advised the IPO issuing companies not to be greedy.

Unfortunately, many of them want to raise money without leaving any scope for appreciation for investors. He lauded the Punjab National Bank for pricing an issue leaving enough margins for appreciation.

The secondary market has looked up in the recent few trading sessions buoyed by the fears of war between India and Pakistan receding.

UNI

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