Taking IPOs in stride

Taking IPOs in stride


The initial public offer from DLF Ltd eventually got fully subscribed. And the ICICI Bank public issue, too, is sailing towards the same happy destination. What is worth noticing is the fact that the secondary market has not even blinked at the prospect of so much fresh tradable stock being in play very soon.

The two mega issues have raised Rs27,937 crore from investors in a couple of weeks. Such strong issuance would have almost surely toppled the stock market just a few years ago. In the 1990s, for example, the maximum amount raised from public issues in a year was Rs13,443 crore, in 1993-94.

Most years in that decade went by with equity issuance of less than Rs8,000 crore. Even the past few years have rarely seen public issues mopping up more than Rs30,000 in a year. That the market can absorb close to that amount in such a short span of time shows that it is today deeper and more mature.