A man with IPO application forms in front of the BSE in Mumbai on Monday. (AFP)

Calcutta/Mumbai, May 22: The stock market carnage may rip apart ambitions nursed by initial public offers (IPOs).

Market participants feel the meltdown and the volatility will impact the offers, though the appetite for good scrips remains healthy.

However, the days of giant oversubscriptions and fancy pricing may be over for now, they added.

“There will be some effect but the good quality issue with right pricing will succeed,” said Vallabh Bhanshali, chairman of Enam Financial Consulatants. Enam is the lead manager of the Deccan Aviation IPO that got bludgeoned on the bourses.

Deccan along with three other IPOs ? Gangotri Textile, Rathi Udyog and Unity Infraprojects ?have received a lukewarm response from investors.

Deccan and Gangotri offers, to close tomorrow, have received meagre subscriptions of 12 per cent and 13 per cent respectively, till 5pm today on the BSE and NSE.

The Deccan issue opened on May 18, the day the sensex crashed by 826 points. Since then, the sensex lost another 909 points that include today’s intra-day whammy of 1,112 points.

Deccan Aviation chairman Captain Gopinath hoped that the issue will be fully subscribed.

“The long term business model of Deccan Aviation has not changed. I am sure long-term investors would put in bids tomorrow,” he added.

Similar views were echoed by Prithvi Haldea of Prime Database, which tracks primary markets. “The scrips that have been caught in the mayhem would definitely be hurt and may not get overwhelming over subscriptions. But all of these would definitely sail through,” he pointed out.

He said it was a win-win situation for the issuers and the investors. While the investors will receive higher allocations, the companies will get the money that it actually wanted.

“When the sensex was ruling at 8000, the market believed it was good news for flotations of new IPOs. So why the panic when the market is still at 10000 plus level?” he asked.

However, those waiting in the wings with their IPOs may adapt a wait and watch policy. The grapevine has it that DLF, which is poised to make a jumbo offering in the range of Rs 12,000 crore to Rs 15,000 crore, and GMR Infrastructure could go slow on their offerings if the markets slid further or remained wildly volatile.