IPOs in 2007 started at a slow pace but later gained momentum and surpassed the capital mobilized in the previous year. This article focuses on the factors that allowed various sectors to raise money through the primary market via the IPOs in 2007.

India now ranks the ninth largest IPO market in the world. The recent report released in November 2007 by Thomson Financial, an arm of the Thomson Corporation, one of the world’s leading financial research and information companies, shows India capturing 3% of the global share in the IPO market up from 1.3% share a year ago.

During the first nine s IPO volumes stood at a staggering $7 bn from 81 issues. Refer Table 1) The largest IPO in the year 2007 was the DLF IPO that mobilized $91.87 mn and the largest Indian share offering on record was ICICI’s follow-on issue worth $4.6 bn and the largest Indian convertible issue of all times was that of Reliance Communications worth $1 bn. During the , it has been observed that most of the IPOs pertained to infrastructure related companies and IT service-providers. In 2006, the capital market witnessed 78 IPOs, mobilizing 7.23 bn from the market. The largest IPO was Reliance troleum, that raised $1.8 bn (Rs. 8100 cr) and Cairn Energy, that raised $1.3 bn.

The rise in IPOs this year can be attributed to resurgence in the Indian economy, the bullish trend in the secondary market and the corporate performance during the year 2007. Resurgence in Indian Economy The projection from various resources indicates the Indian economy to grow close to 9% in real terms, during the financial year 2007-08. Standard & Poor’s in its midyear review has estimated ia’s GDP growth to be at 8.6% during 2007-08, a moderation from last year’s 9.4%.

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