Primary market pain continues

Volatility in the markets and tepid response to the initial public offering (IPO) of Chalet Hotels could queer the pitch for other companies. About half-a-dozen companies were looking to launch their IPOs this month. Investment bankers say the condition continues to be challenging for new issue launches. “The sell-off in broader markets due to troubles have dampened sentiment. Also, the investor response to the recent IPO was less than expected,” said a banker. Last week, Chalet Hotels had a lacklustre stock market debut. Its ~1,640-crore IPO had managed to scrape through with just 1.6 times subscription and less than 5,000 investor applications.