Though the initial euphoria about the big ticket initial public offerings has taken a back seat, this year the Indian IPO market is still thriving thanks to lesser known firms who are finding their way into the Dalal Street.

Many companies are opting for the equity markets route as they find that a public listing is cheaper than raising money through the debt route.

With 7 months gone by in 2008 only 38 companies have gone the IPO way despite the bearish sentiments in the market. Nu-Teck India's IPO is subscribed 1.6 times at a time when the market is down more than a quarter so far this year.

Bigger firms like Emmar MGF, Wockhardt Hospital and UTI may have deferred their respective issues but they might tap the market in the near future.

However, experts say small and medium companies do not enjoy such luxury and have limited options to raise money.

"No entrepreneur likes to dilute his stake and control from his firm but the tough situation prevailing even in the debt markets have left them with no option but to tap the equity markets even during these times,” elaborated Rajesh Jain, Director & CEO, Pranav Securities.

In the month of July alone 8 small and medium firms got listed on the BSE and NSE at fairer valuations.

IPO NAME – Issue Price – List Price

Birla costson – 14 – 15

Somi Conveyor – 35 – 30

KSK Energy – 240 – 234.8

First Winner – 125 – 101

"The small and medium firms have the option of tapping markets or going to the PE investors who in turn do hard bargaining,” said Prithvi Haldea, CMD, Prime Database.

In the given market scenario IPOs may have lost the gist. However, these smaller companies with a potential to grow big give small retail investors an opportunity to participate in these small ticket size issues having realistic valuations.