A total of 10 companies collectively managed to garner Rs 6,059 crore (Rs 60.59 billion) through their IPOs during the fiscal year ended March 31, 2013, shows an analysis of data available with the stock exchanges.
Divestment in major state-run firms is set to perk up the IPO space, with about six PSUs including Air India, BSNL, Oil India and NHPC, gearing up to sell equity sale in the primary market.
India's flag carrier Air-India has shortlisted three companies to act as advisors for its initial public offer to finance the fleet acquisition and is awaiting the government's nod for the IPO, a spokesman of the airline said on Thursday.
In the 52 newly listed companies since 2014, fund managers have a total investment of a mere 2.5 per cent of their assets under management.
Indian bourses saw over $8 billion worth of initial public offers in 2007, but this is just a shade higher than the world's single-largest IPO that was brought by a Russian company.
Several institutional investors were ineligible to invest in these companies as they failed to meet the disclosure norms
Reliance Power is being touted as India's biggest ever IPO with an estimated size of over $3 billion, surpassing just over $2 billion raised by DLF. This would be the first ever IPO from Anil Ambani group after being carved out from the erstwhile Reliance empire in 2005.
The primary markets are finally coming back on track, with the initial public offer (IPO) of state-run lender and electricity distributor Rural Electrification Corporation (REC) getting subscribed within 27 minutes of opening.
After the massive price volatility in Shekhawati Poly-Yarn, listed in January, the counter of Omkar Speciality witnessed wild price movements within a couple of days of listing.
To boost fund raising from markets, Sebi on Thursday proposed e-IPO norms where investors can bid for shares through Internet and eventually on mobiles, while already listed PSUs will be provided a 'fast-track' route for share sales to meet the disinvestment targets.
This is also the first stake sale by a state-run company in 17 months after REC went public in February 2008 to raise over Rs 1,600 crore (Rs 16 billion). The issue will open on August 7 and close on August 11. The company would sell 168 crore (1.68 billion) shares comprising of five per cent stake divestment of the government and infusion of 10 per cent fresh equity.
LIC, the country's largest insurer, on Friday ruled out an initial public offer to raise capital, as it has made separate provisions worth about Rs 17,000 crore (Rs 170 billion) in the last few years to meet IRDA's norms.
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Bids for the issue, which opens on January 23 and closes on January 25, can be made for a minimum of 18 shares and in multiples of 18 thereafter.
The BSE Sensex plunged by about 35 per cent in the last six months. The benchmark index which was over 20,000 level in January, is currently hovering around 13,000. Pre-IPO placement that was intended to offload about 11 per cent of the post diluted shares has also been put on hold, sources said pointing out that the company would revisit its capital raising plan once the market condition improves.
At least 43 of the 175 issuers would have been hit if proposed mechanism had been in place before the R-Power IPO.
Since 11 months, Sebi has not been able to make these companies deposit the required money in an escrow account.
Proceeds would be used for business expansion, repayment of loans and working capital requirements
In a circular issued on Thursday, Sebi said that the remaining locations would be covered in the second phase by March 1, 2013.
Sebi had last year banned Indiabulls from carrying out trades but the order was kept in abeyance till completion of the inquiry.
Global IPOs raise a record $246 billion in 2006.
On the day of Facebook's market debut, trading glitches by the Nasdaq postponed the start of trading in the company by 30 minutes.
Bharti Infratel is a provider of telecom towers and related infrastructure and on a consolidated basis, is one of the largest in India, "based on the number of towers that Bharti Infratel owns and operates and the number of towers owned or operated by Indus, that are represented by Bharti Infratel's 42 per cent equity interest in Indus," according to the offer document.
"Higher IPO-graded companies typically tend to operate in higher growth industries, have superior management strengths and follow good corporate governance practices," says Chetan Majithia, head, Crisil Equities.
Following the footsteps of its peers, the Kolkata-based UCO Bank has priced its Rs 240 crore initial public offer at an attractive Rs 12 a share to woo retail investors.
Indian Bank plans an initial public offer in July 2004 to raise capital for funding its expansions, its chairman Ranjana Kumar said on Tuesday.
Jack Ma, founder of China's e-commerce giant Alibaba suffered a major setback on Tuesday as Shanghai and Hong Kong Stock Exchanges suspended dual listing of the shares of his world's biggest initial public offer of $39.7 billion of the group's subsidiary - the Ant Group, 48 hours before the highly-anticipated trading was due to start. The Shanghai Stock Exchange surprised market investors with an abrupt announcement late on Tuesday that it will suspend Ant Group's IPO, as regulators and the public debate the balance between financial innovation and risk control, state run Global Times reported. According to media reports, the Hong Kong exchange followed suit several minutes later.
'The India which was all about glamour and razzmatazz through which he could earn the trust of people of the other India, which was Bharat.'
More companies are harbouring aspirations to go public, following a sharp market rebound after June's nadir. In August, seven companies expecting to raise a cumulative Rs 10,425 crore filed their draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi). The amount they are looking to mop up is the highest since March, when 13 companies filed their DRHPs to raise a combined Rs 19,494 crore, reveals data provided by PRIME Database - a source of comprehensive information on all capital market offerings.
National Hydroelectric Power Corporation will hit the market with an initial public offering by August this year and govt has assured the 'mini-ratna' status to the public sector unit. The IPO, scheduled for last year, got delayed as the company had not appointed non-official directors on time, a condition mandatory for any company to float an IPO. As per the guidelines of market regulator Sebi, 50 per cent of the board must be of non-official directors.
While there is inherently nothing wrong with investing in an IPO, the decision to invest in one should be triggered by its ability to fill a gap in the investor's portfolio.
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