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Market Turmoil Takes its Toll on Indian IPOs

IRB Infrastructure Developers manages to buck the recent trend of failed initial public offerings, probably due to its reasonable valuation

IRB Infrastructure Developers has raised Rs9.45 billion ($240 million) from its initial public offering, making it something of a rarity in the Indian primary market these days when several other deals have been withdrawn due to poor demand.

Observers say the infrastructure theme was likely a key reason for the investor interest, but they also note that the IPO was priced at a reasonable valuation compared with its sector peers. When the deal closed on Tuesday last week, investors had asked for 4.3 times the number of shares on offer and according to data on the National Stock Exchange website it was fully covered at the top end of the price range.