Dec 2012, the kindest month for equity issues
According to stock exchange data, the sale of 10% stake in state-owned NMDC raised nearly Rs 6,000 crore. The IPOs of Bharti Infratel, CARE Ratings and PC Jeweller raised a combined R5,600 crore while the OFS of Honeywell Automation, Reliance Power, Eros International and STI India raised an additional R1,650 crore.
Investment bankers and primary market experts attribute the pick-up to the government’s stake sale initiative as well as the buoyancy in secondary markets following a burst of reforms.
December is usually a sluggish month for markets. “Institutions and investment bankers are busy closing their books and preparing fund-allocation for the forthcoming year. It is also holiday time for global institutions,” said an SBI Capital Markets official. However, the government’s reforms initiatives to address the twin-deficit problem and boost economic growth revived sentiment in secondary markets, the official said.
Stock exchange data show that an additional R1,000 crore could be raised through public issues in December. The Adani Enterprises OFS, which hit the market Friday is expected to raise around R650 crore. The company has proposed to offload 2.30 crore shares at a floor price of R282 apiece.
Experts also attribute the fund-raising to attractive pricing and timing.
“The markets did not perform well in the
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