Barclays India CEO: Some IPOs are being mispriced

A EUPHORIA IN India’s primary markets is leading some companies to misprice their initial public offerings, prompting investor caution, according to Pramod Kumar, chief executive officer of Barclays Plc’s India unit.

- SAIKAT DAS & RAJESH MASCARENHAS

The country’s IPO machine is breaking fundraising records, with the surge underscoring how India’s capital markets have matured into a major fundraising hub, driven by a swelling base of retail investors and steady institutional appetite even as secondary equities lose steam.

“When you see such frenzy, there is always likelihood of some of the companies mispricing their IPOs and therefore their stocks not doing well,” Kumar told Bloomberg Television’s Haslinda Amin.