India's booming initial public offering market is set to grow further in 2008, but issuers need to be more realistic about valuations to ensure the party goes on.
As long as issuers demonstrate more restraint in terms of valuations and pricing expectations, I think deals can get done.
"The challenge is that there is a lot of exuberance in the minds of issuers and that is where correction is required," Companies in India are expected to raise up to $15.8 billion from new listings in 2008, almost twice as much as last year's record $8.3 billion, according to data from Thomson Financial.
The Indian stock market has been on a five-year, record-breaking bull run partly driven by foreign funds attracted by strong domestic economic growth.
Volatility has however picked up, with the index posting intra-day falls of more than 10 per cent on two days last week before rebounding to end a turbulent week down 3 per cent.
Value was beginning to emerge in Indian equities, with the market trading at a price to earnings ratio of about 17 times for the year ending March 2009.
"These are pretty healthy levels and from a longer term point of view, the correction is making markets more robust for the future."
Indian billionaire Anil Ambani's Reliance Power last week raised $3 billion within a minute of opening. The issue, India's biggest initial public offering, attracted bids worth a total $190 billion.
"I think the message from the markets to investors in general, and issuers, is that we have got to make sure there is an element of realism in the middle of exhuberance. Back to basics,"
As long as issuers demonstrate more restraint in terms of valuations and pricing expectations, I think deals can get done.
"The challenge is that there is a lot of exuberance in the minds of issuers and that is where correction is required," Companies in India are expected to raise up to $15.8 billion from new listings in 2008, almost twice as much as last year's record $8.3 billion, according to data from Thomson Financial.
The Indian stock market has been on a five-year, record-breaking bull run partly driven by foreign funds attracted by strong domestic economic growth.
Volatility has however picked up, with the index posting intra-day falls of more than 10 per cent on two days last week before rebounding to end a turbulent week down 3 per cent.
Value was beginning to emerge in Indian equities, with the market trading at a price to earnings ratio of about 17 times for the year ending March 2009.
"These are pretty healthy levels and from a longer term point of view, the correction is making markets more robust for the future."
Indian billionaire Anil Ambani's Reliance Power last week raised $3 billion within a minute of opening. The issue, India's biggest initial public offering, attracted bids worth a total $190 billion.
"I think the message from the markets to investors in general, and issuers, is that we have got to make sure there is an element of realism in the middle of exhuberance. Back to basics,"
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