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Indian Primary Markets tasting trouble waters

February 8th, 2008

It is the case of Wockhardt Hospital yesterday and today it is with Emaar MGF. These two are the latest to have withdrawn their IPOs.

Only yesterday did Wockhardt Hospital withdrew its IPO attempt citing poor response. Market sources feel that the IPO pricing is a bit on the higher side. Needless to say, most of the bids are received at the lower bottoms despite having revised the company revised its pricing.

Emaar MGF which withdrew its IPO today said it is considering raising funds through other routes which could include private placement, PE at SPV level. The company said that the company has low debt-equity ratio and that it has sufficient funds to meet its existing project needs. It may be recalled the IPO is actually extended till February 11. After the withdrawal announcement, investors are told they will be getting their funds back in 10 to 15 days time.

Meanwhile the other IPO that is currently on - SVEC got extends to February 13. There is a revised price put in place again.

Entry Filed under: Equity Markets