Pri­mary mar­ket pain con­tin­ues

Business Standard - - THE SMART INVESTOR - SUN­DAR SETHURAMAN

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.

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