After a dull 2011, Initial Public Offer (IPO) market in India is likely to be better this year on the back of an easing interest rate environment, investment bank ICICI Securities said today.

"We hope that it will be better in the current calendar year in comparison to last year as the reverse rate cycle is likely to set in," ICICI Securities Managing Director and Chief Executive Officer Anup Bagchi said on the sidelines of a conference here.

One big size IPO with fair valuation should come to the market to set the momentum in the IPO space, he said.

"There has to be large size IPO, preferably from public sector companies, that should come to the market and it should create good returns for investors for the IPO market to pick up this year."

Referring to fund raising opportunities by private companies, Bagchi said there are various avenues such as listing outside India, domestic listing as well as private equity investments.

Last year, companies deferred plans to go public as the investor sentiments were low due to rising interest rates coupled with global uncertainty.

"IPO market will not be vibrant in the initial months of 2012. However, it was likely to pick up in the second half of the year," he said.