The threshold companies going for public subscription may face a subdued response on lower valuations after the lukewarm reaction to two recently-listed high-profile scrips, Adani Power and NHPC, as analysts believe more corrections are expected in the overheated primary market.
Adani Power and NHPC have witnessed their prices falling below offer prices. Although these issues were oversubscribed, the poor performance of these IPOs will bring some sanity in the market.
There are around 25 companies expected to file draft red herring prospectus by the end of this quarter, of which one third belongs to the real estate sector.
In the current fiscal, companies are mulling to raise as much as Rs 50,000 crore from the market through primary issues.