₹ 25,000 crore IPOs will come up
Primer market has been frozen for some time due to correction in the Indian market.
However, in the next few months, more than two dozen companies are planning to bring an IPO to raise about Rs 25,000 crore from the market.
These companies will primarily use the amount collected through the IPO to expedite their projects and to meet the requirements of working capital.
Companies, including Hindustan Aeronautics, ICICI Securities, Barbecue-Nation Hospitality and Flamingo Travel Retail, Karda Constructions, Nse India are planning to launch share sale offers in the coming months.
Most of these companies will use the amount received from the IPO for their expansion of business and to meet the requirements of working capital, according to information made available in the draft papers.
Besides, these companies believe that listing of their company’s shares on the exchange will increase their brand and existing shareholders will have the opportunity to disconnect their investment.
Barbecue-Nation Hospitality, ICICI Securities, India Dynamics and Indian Renewable Energy Development Agency has acquired market regulator Sebi’s approval to bring the IPO this year.
Apart from this, 20 companies including RITES, M / s Metallurgical Corporation Ltd, Bandhan Bank, Indostar Capital Finance, Nazara Technologies and Route Mobile are waiting for Sebi’s approval to bring an IPO.
Together, these companies are planning to raise around Rs 25,000 crore through the IPO, Merchant Banking sources said.
Besides, five companies, including Newborn Software Technologies and Amber Enterprises India, have made a debut in the capital market.
According to experts, as more than a dozen companies are awaiting SEBI’s approval to bring public issues, there will be significant exposure in the IPO market in the coming days.
Apart from this, due to a higher valuation of secondary markets, more investors will be encouraged to invest in IPOs, experts believe In 2017, 36 companies, together with the IPO, raised more than € 67,000 crore in funding.
Which led to 2017 year, becoming the best year for the IPO.
Earlier this year, through the IPO, fund raising of ₹ 37,535 crores was collected