The initial public offering (IPOs) market in India is all set for a robust beginning in the calendar year (CY) 2017, with 14 issues worth R8,063 crore, which have received approval from the Securities and Exchange Board of India’s (Sebi), are waiting to hit the market.
Another ten companies, including National Stock Exchange (NSE) whose IPO according to some market participants will be the second biggest after Coal India in 2010, are waiting for Sebi’s approval.
The first IPO to hit the market this year is that of Bombay Stock Exchange (BSE), Asia’s oldest stock exchange, it will sell shares in a price band of R805-806 per share and plans to raise R1243 crore.
The IPO will open on January 23 and closes on January 25.
IPOs of Avenue Supermarts whose R1,870 crore issue received Sebi nod in December 2016, Aster DM Healthcare whose offer is worth R1,600 crore, Hinduja Leyland Finance which is into vehicle finance business ,and CL Educate whose business interests include test preparation,and vocational training are some of the IPOs which will hit the market in the coming months.
Prominent among those waiting for Sebi’s approval include National Stock Exchange (NSE), the largest stock exchange in India in terms of volume. Central Depository Services Limited, CDSL which facilitates holding of securities in electronic form is also waiting for Sebi’s nod for its offering. Central Depository Services Limited (CDSL) apart from NSE promoted National Securities Depository Ltd is the only depository in the country.
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Others waiting for the regulator’s approval include government-owned Housing and Urban Development Corp Ltd (Hudco), Cable TV and broadband Internet services provider Hathway Cable & Datacom Ltd and construction firm PSP projects.
In the calendar year, 2016 around 26 companies raised R26,000 crore, the third biggest in the last 25 years and 17 of them are trading above their issue prices.
The author of this article is Sundar Sethuraman.