Markets regulator Sebi seems to be on the fast-track mode in case of giving approvals to IPO proposals, as it has cleared 16 such applications this year so far while just four companies await green signal to launch their public offers.
Among the pending ones, three firms — Hinduja Leyland Finance, Seaways Shipping and Logistics and CL Educate — filed their IPO prospectus with the regulator on March 30.
The draft prospectus of RBL Bank (formerly Ratnakar Bank) was filed in June last year but has been ‘kept in abeyance’ as the past violation by the company is under examination.
The regulator is often accused of taking long time for clearing the IPO issues. However, it approved as many as 16 IPO applications in the first five months of 2016 and only four companies are currently awaiting clearance for launching their public issues.
In case of pending approvals, Sebi has sought clarification from the merchant bankers of Hinduja Leyland Finance and Seaways Shipping and Logistics regarding their proposed initial public offers (IPOs). While the initial-share sale programme of CL Educate is currently under process.
All the 16 firms had filed draft papers with Sebi during September 2015 and April 2016.
Of these, three firms — Equitas Holdings, Thyrocare Technologies and Ujjivan Financial Services — have already hit the capital markets and collectively raised Rs 3,500 crore.
So far this year, as many as ten companies including Parag Milk Foods, TeamLease Services, Infibeam Incorporation and Quick Heal Technologies — launched their initial public offerings.
Last year, there were 20 main-board IPOs which together pocketed about Rs 15,000 crore, making 2015 the best period in the past few years in terms of fund raising through such plans.
In comparison, six IPOs had hit the market in 2014 and garnered just Rs 1,261 crore, while three firms had launched their public issues in 2013 to mobilise Rs 1,284 crore.