The average size of IPOs rose by nearly half in 2008 over 2007, though the financial meltdown may have scared away many from the primary capital market, bringing down the number of IPOs to about one-third, the Economic Survey said on Thursday.

"(A)fter recording strong growth during 2006 and 2007, the primary capital market received a setback in 2008. The number of new issues declined sharply in 2008 ... the total number of initial public offers were only 37 in 2008, as against 100 in 2007," the Survey said.

"The amount mobilised by IPOs at Rs 18,393 crore was lower by 45.8 per cent during 2008, However, the mean IPO size increased from Rs 339 crore in 2007, to Rs 497 crore in 2008," it said.

Besides the primary market, the Indian business houses' appetite for fresh capital also decreased in 2008 as the total amount of capital raised by equity issues, including IPO and rights issues, declined nearly 16 per cent.

"(The) total amount of capital raised through equity issues during 2008 was Rs 49,485 crore, recording a decline of 15.7 per cent as compared to the level in 2007," the Survey said.

So far in 2009, only three companies came out with IPOs.

In February two firms – Chennai-based EdServ Softsystems and Gemini Engi-Fab – announced their intention to enter the capital market. While EdServ raised over Rs 20 crore through the IPO, Gemini Engi-Fab withdrew its issue even before it started.

However, the Rs 301 crore IPO of Mahindra Holidays & Resorts, which hit the market last month, got subscribed nearly 110 per cent, according to data available on the National Stock Exchange.

"The performance of the capital market has lately shown signs of revival of investors interest and confidence – both (of) domestic and foreign institutional investors," the Survey said.