New IPOs hitting the street will not affect secondary market

Mehraboon Irani, Sr. VP - Equity, FCH – Centrum Wealth Managers Ltd , in a chat with ET Now talks about the IPO hittinf D-Street.

ET Now: What is the call really on the primary market because a slew of IPOs have been hitting the market still now and I believe the next 15 days are also power packed?

Mehraboon Irani: Yes, as far as I understand there are quite few IPOs lined up and this is normally the case as I mentioned earlier to the question on general market. The risk appetite is very much intact and I do not see any problem as far as the absorption of these shares which is coming into the system getting absorbed. Normally people start questioning that money will go into these IPOs and that will affect the secondary market normally it does not happen that way.

If the risk appetite is intact, that is enough money in the system, domestic as well as foreign money, I do not see any reason why these IPOs should have any problem to got subscription. In such type of environment there are quite a few companies, quite a few promoters in line with that they tend to try to over price the IPO. So people will have to be a little bit selective. But having said that, if the IPO is good enough despite the fact that it may look at a slight rich valuations, and people end up subscribing some as intentions end up making money. So I am quite confident that the fresh shares coming into the market because divestments are going to take place.