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IPOs return to street with recent stock market upswing

05 Dec 2012
The long-pause in fund raising by way of Initial Public Offers (IPO) seems to be coming to an end as four companies plan to hit the D-Street over next couple of weeks, looking to cash in on the recent upswing in stock markets.

Four companies, excluding PSUs disinvestments, are set to raise around Rs 5,700 crore from primary market in the month of December even as some experts remained skeptical over the ability of markets to absorb such issues at a time when companies like Rural Electrification Corporation (REC) and NMDC are also set to raise almost Rs 11,000 crore.

The biggest in the IPO pipeline would be the issue of Bharti Infratel which plans to raise around Rs 4,500 crore. The issue from the tower arm of telecom major Bharti Airtel would be biggest after Coal India raised Rs 15,000 crore in 2010.

Besides, CARE Ratings and PC Jeweller also plan their public offers in the month of December, aiming to raise as much as Rs 1,000 crore.

CARE Rating’s Rs 540 crore IPO, having price band of Rs 700-750 per share, will open on December 7 and close on December 11, while PC Jeweller will hit the market on December 10 to raise up to Rs 609 crore.

The sudden comeback of IPOs could be attributed to recent upswing in the stock markets. Indian benchmark indices touched almost 19-month high in the last week amid hopes of end to the parliamentary logjam and Goldman Sachs’ upgrading Indian equities to ‘overweight’.
Source: Dion Global   Type: IPO Related