But those in the primary market are acting as if the bull market is alive and kicking. The ICICI Securities issue fared the worst this month, receiving bids for only 88% of the total shares on offer. For the two other public sector issuances this month, DIIs accounted for 54% of total bids received cumulatively. In late 2017, when the government divested its stake in two general insurance companies, investors who bid found that they would have been far better off waiting until listing. The success of the Bandhan issue may tempt bankers and issuing companies to continue to demand high valuations even going forward.

Source: Mint March 28, 2018 02:26 UTC