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Amid companies shelving their IPO plans fearing the stock market turbulence, which has also hit post-issue listings, the government is treading cautiously with the plan for state-run Rural Electrification Corp's public offer.
"I called the Chairman and Managing Director (of REC) to discuss the issue. I am concerned about the market conditions," Power Minister Sushilkumar Shinde told reporters today when asked if the IPO could be deferred to a later date.
Power Secretary Anil Razdan, however, said that a strong player like REC could be an answer to the turmoil the markets.
Rural Electrification Corp CMD A Lakhina is currently in the US for the overseas investor roadshows for the IPO, Shinde said.
The past few days have already seen three IPOs -- realty giant EmaarMGF, Wockhardt Hospitals and SVEC Construction -- being shelved in the middle of their book building process, while a couple of others have also decided to postpone their IPOs to a later date.
Besides, Anil Ambani group's Reliance Power, which raised close to three billion dollars in India's biggest ever IPO last month, made a weak debut on the bourses on Monday, when its share price closed 17 per cent below the offer price.
The four-day book building for Rural Electrification Corporation IPO is scheduled to open on February 19. Source : The Economic Times |
