Almost all IPOs are in tough conditions as the global market going down since last few weeks. The global IPO volumes had already fallen by more than 15% in January 2008.

Volumes of the IPO has reached to Rs 2520 Crores from 45 deals In January 2008 as against a total of Rs 3000 Crores from 65 issues in January 2007 raised in IPO proceeds. If the volumes are compared, the January 2008 is the lowest since January 2005.

Surprisingly, China and the US have recorded huge decline in IPO proceeding and not reached to the billion-dollar IPO proceedings in January, China has listed 72.6% decline and the US has recorded 46.1% decline, as per the research.

The down fall in IPO has occurred because of the recession in the US market which is having effect on the global markets around the world. India might also see a slowdown in the IPO market, but there's nothing to worry about. It is important for the market that Reliance Power IPO listing goes off well.

According to Thomson Financial research, if not for India's Reliance Power IPO, which raised nearly Rs 1200 Crores, the global IPO market should have experienced a more significant decline.

According to brokerage houses investors who have borrowed funds to invest in the Reliance Power IPO, a lot is at stake for them because a lower premium in the grey market implies lower gains on the listing day.

Source : stockwatch.in