Foreign funds take a liking to IPOs

The foreign fund selloff in Indian markets in 2015 made headlines and generated talk about a souring of the FII mood regarding India. The reality is a little different and a lot more complex. Foreign funds invested more money in IPOs and QIPs of well-known companies than in the secondary market, an ETIG analysis shows. The year 2015 has turned out to be the best year for primary markets after 2010 and FII participation in the IPO of IndiGo and the QIPs of HDFC Bank, Bajaj Finance and IndusInd Bank was high. FIIs have preferred the secondary market to primary market since 2009. The fact that this preference changed this year has a lot to do with hyped-up valuations and a slew of quality offerings from unlisted companies, reports ET.