Says Prithvi Haldea of Prime database, ``Companies who have obtained Sebi nod for IPO may start thinking of going public. But, they will prey for this rally to continue for at least 10-12 days. As they need at least 21 days to go public even with Sebi clearance.''

However, Haldea points out that those companies which have IPO plans but no Sebi clearance may not rush to the market. ``The current rally is too short a period for those who are only in the planning stage of an IPO. The process takes 2-3 months for coming out with an IPO. And no one could predict where the market would be after three months.''

According to a Delhi-based primary broker, the current rally has much meat compared to the February-rally when the Sensex touched a peak of 6000.

``This rally is with a difference unlike the previous bull-run where an element of madness had crept into,'' the broker says. If the index scales to 5000, the IPO market is likely to see more activity, he adds. But the broker warns, ``Only well-established companies with good revenue models will be able to tap the public. The primary market has matured and it won't be easy to sell issues as lot of focus will be on quality.'' Also, investors will not put money in companies just for the name of Internet and dotcom, he adds.

The signs of a boost in confidence of both promoters and investors are already visible. Padmalaya Telefilms, the much-awaited listing, has recently made a debut on the bourses. Padmalaya got listed at a premium of 10 per cent to its IPO price of Rs 100 on the Mumbai Stock Exchange.

The stock is still trading at a premium to the issue price. Another listing is from Aksh Optifibre which has been listed on BSE at a premium of 7.69 per cent against its offer price of Rs 60. The stock with a face value of Rs 5 each opened at Rs 65 on Wednesday (August 23).

Two media companies have also announced their IPO date. Tabassum International is hitting the market with its Rs 4-crore IPO at par on September 6. TIPS Industries is likely to hit the market in the first week of September with its bookbuilding portion. TIPS Industries is offering 30 lakh equity shares of Rs 10 each. Of this, a major portion of 27 lakh shares will be offered through the bookbuilding route (90 per cent) and 3 lakh shares at a fixed price.