Indian & Global IPO Market in free fall in 2011 says ARC Financial Services

May 8, 2012 - PRLog -- The IPO market that had witnessed a bright 2010, saw a drastic fall in 2011, according to a report from ARC Financial Services, a financial services firm out of New Delhi. Driven by the European debt crisis and US credit rating downgrade, the IPO activity fell by 45%, as gauged by the number of deals and capital raised.

According to the ARC-FS report, year-on-year the number of deals almost halved. Emerging markets could not repeat their stellar performance of 2010 although 7 of the year's 10 biggest IPOs were listed there.

ARC-FS said in its report that the Indian IPO market saw little excitement with 25 IPOs withdrawn in 2011. The last quarter of 2011 contributed to just 8.4% of the total IPO proceeds of the year. Of the total amount mobilized through the primary market by corporate India, the top 10 issues raised over Rs. 44 billion ( ~72% of total IPO proceeds in 2011). Only 9 issues out of 39 are trading above their offer price. This downward trend has seen about ` 40 billion of investors’ wealth beingwiped out. The investor confidence was low with only 2 IPOs oversubscribed by more than 10 times and FIIs turning net sellers in the second half of 2011.

Contact Persons
CA Tapan Jindal
Aniket Kulkarni
Vamsi Krishna Reddy Y

ARC Financial Services (P) Ltd.
(w): www.arc-fs.com
(o): +91 11 6542 2128  
(e): info@arc-fs.com