Measured enthusiasm

1 September 2006 By Una Galani Follow @ugalani

Share prices have almost recovered from the May crash. More optimistic investors are willing to buy new issues. But this boom looks like less of a bubble. Contrasting enthusiasm for two recent issues shows the Indian market is maturing.

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In the fiscal year to date only $370m has been raised through the IPO market. Prime Database, a firm tracking share offerings in the Indian market, estimates there are dozens of companies waiting to raise just under $5bn during the rest of the current fiscal year.

The annual amounts raised in the Indian IPO market has grown rapidly in the last 15 years, from a low of $368m in 19901991 to over $5bn in 20052006. Last year was the second best for new issues.

The Sensex, India's benchmark index, closed Friday at 11717, up from a midJune low of 8929. The index crashed 30% from its May 10 record peak of 12612.

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