While real estate giant DLF has just completed its initial public offer of over two billion dollars, the largest private sector lender ICICI Bank is hitting the market with a follow-on public offer next week, to be followed by a similar offering abroad.
ICICI Bank is targeting to raise about five billion dollars, while Anil Agrawal promoted Sterlite Industries is planning to sell shares worth about two billion dollars in the US.
While DLF, ICICI Bank and Sterlite alone account for funds worth about nine billion dollars, the total for the month of June would easily cross 10 billion dollars, according to domestic investment bank JM Financial's managing director and co-CEO Atul Mehra.
"The market is very happy to absorb this kind of liquidity. It only goes to show the strength, which India enjoys with its investors, not only in India but across the globe," Mehra told PTI.
In contrast, Indian corporates had raised a total of 14.5 billion dollars through equity issues in entire 2006, he added.
"This shows the pace at which India Inc is growing," Mehra said. The market observers expect this trend to continue in the coming months as well.
The second largest public sector lender HDFC Bank is also planning an equity issue worth 700 million dollars next month as part of its plans to raise one billion dollars this year.
The equity issues by Indian companies are witnessing robust demand from domestic and foreign investors alike. DLF's IPO, which will raise up to Rs 9,625 crore (Rs 96.25 billion) for the company, received total demand worth over Rs 33,000 crore (Rs 330 billion), which included over Rs 25,000 crore coming from the FIIs alone.
In the coming months, other major equity issues to hit the market, include those from PSU banking giant SBI, Power Finance Corporation, Power Grid Corporation among other private firms' offers.
The country's largest private lender ICICI Bank would raise up to Rs 8,750 crore (Rs 87.50 billion) through a follow-on public offer in the domestic markets, while it plans to mop up a total of Rs 20,125 crore (Rs 201.25 billion) from local and international markets, including a green shoe option of 15 per cent.
