"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.

1. IPOs of 2007 witness value erosion of over USD 3 bn so far
New Delhi (PTI): 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.
quot;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,quot; NEXGEN Capitals Equity Head Jagannadham Thunuguntla said.
In the backdrop of bearish capital market conditions this year, the IPOs of 2007 have reported wealth
erosion across the industry segments. quot;More than 60 per cent of the value is eroded in the industry
segments of auto, healthcare, manufacturing, media and real estate,quot; the report added.
quot;Media was the worst hit space as business in this sector is very difficult to continue, besides this sector
has a very long gestation period,quot; Thunuguntla said, adding quot;when a market falls the capex driven firms
such as infrastructure and realty are affected, while media related firms which generally have in-
operational cashflows also get negative impact.quot;
There were 103 IPOs in 2007, out of which 88 representing (85 per cent) were in loss and only 15 in
profit.