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IPOs Of 2007 Witness Value Erosion Of Over USD 3 Bn So Far

The Indian primary market has virtually dried up as the total value of initial public offering of 2007 has
witnessed an erosion of about USD 3.43 billion so far this year, with the media space being worst hit, a
latest report says.

The bullish trend in the capital market was see in the IPO volume of 2007, as a record volume of USD
8.18 billion was raised.

However, rough market conditions have resulted in a negative return of about 42 per cent or a value
erosion of USD 3.43 billion in absolute terms till October 10, according to a report of Nexgen Capitals,
the merchant-banking arm of brokerage firm SMC Global Securities.

"In a bear market fund raising activity becomes very difficult. Excess of bull market last year has resulted
in the bear market this year. In a bull market takers for every issue at every level can be found but today's
market is a buyers market," NEXGEN Capitals Equity Head Jagannadham Thunuguntla said.