pressure-on-sensex-bodes-ill-for-indias-ipo-pipeline

Pressure on Sensex bodes ill for India's IPO pipeline

Reliance Petroleum finally trades below issuance price while Deccan Aviation lists at 34% discount to issue price. Both suggest the going could be tough for the larger issues in the India pipeline.

By Sameera Anand

June 13, 2006

The Sensex has û unsteadily - hovered between 9,000 and 10,500 since it crashed from its high of 12,671 in May. Deccan Aviation which listed on June 12 witnessed yet again the sway of stock market sentiment. The company's IPO became collateral damage for the falling markets in May - coinciding with crashing markets the IPO faced problems garnering subscription but was eventually covered. However, the lead managers were powerless to prevent the share taking a beating on listing with selling pressure forcing the price down from the IPO price of Rs148 $3.29 by 34% to Rs98 $2.17.

Meanwhile, in another key indicator, the hot IPO from Reliance Petroleum - which initially surged from...

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