IPOs seeing revival: Deepak Parekh

Excerpts from Markets Midday on CNBC-TV18 Watch the full show » Nifty BSE | NSE 31/05/12 Are Mutual Funds betting on Nifty?

Deepak Parekh, Chairman of HDFC, on the sidelines of the Private Equity International India Forum 2009, said that initial public offerings (IPOs) were seeing a revival. "This may provide attractive exit strategies for some of you. However, many of the recent IPOs have been overpriced."

Here is a verbatim transcript of Deepak Parekh's comments on CNBC-TV18. Also watch the accompanying video.

Initial public offerings (IPOs) are seeing a revival and this may provide attractive exit strategies for some of you. However, many of the recent IPOs have been overpriced. I was looking at the paper in China, the last recent five IPOs are all under water. Promoters wanting to cash out on a rising market scenario is fine but not at the cost of leaving nothing on the table for the investors. In today's environment investors have reason to be fickle and unforgiving. The going has been good for India so far but markets are looking a bit expensive at over 18 times forward earnings now especially in comparison with other emerging countries. So there is reason to be cautious. While many maintain that India's growth can sustain such valuations, I believe that if markets cool off a bit, it would help earnings to catch up with valuations which would benefit the market in the long run.