Emaar MGF IPO, with just one day left for closing on Tuesday, failed to enthuse investors with subscription touching as little as 0.31 times as per NSE website, while Wockhardt Hospitals IPO that was to close on February 5, 2008 opted for an extension for another two days. Both Emmar and Wockhardt IPOs are overpriced, felt analysts, compared to stock prices of similar companies already listed.

However, Emaar MGF is not keen on seeking extension, official sources said. IRB Infrastructure Developers has obtained subscription for their IPOs up to 3.95 times, as per NSE website, while IPO of Tulsi Extrusions, PVC pipes and fittings manufacturer for all the key sectors, has got 1.73 times subscription. 

The IPO of SVEC Constructions with a price band between Rs 85 to Rs 95 was subscribed by just 0.01 times by 17:00 IST, on the second day of the issue on Tuesday.

Restrain valuations

If this is the kind of investor response to IPOs, it is anybody's guess as how these IPOs -- even if they get past the subscription stage – are to fare at the time of listing in terms of premia.  Though experts, the primary capital markets will come to stabilize but the IPO promoters will have to restrain valuations markedly to entice the investors.

Even in January, except for Shriram EPC which managed to get subscription for close to 4 times, most of the other IPOs have barely managed to scrape through.  Unless the situation in the interest rates change, markets – both primary and secondary – will continue to be grim, say market watchers.