The success of Reliance Power?s initial public offer (IPO) has heated up the primary market with 19 more companies lining up IPOs within the span of a month. The offers are expected to mop up a whopping Rs 9,900 crore.
The majority in the list includes real estate and infrastructure firms like J Kumar Infraprojects Ltd, with an issue size of Rs 100 crore, Gammon Infra Projects (Rs 350 cr), KNR Construction Ltd (Rs 150 Cr), IRB Infra Developers Ltd (Rs 1,150 cr) and SVEC Construction Ltd (Rs 50 crore).
J Kumar Infra, Gammon Infra, Cords Cable Industries and KNR Constructions are expected to hit the market between January 18 and January 27, according to sources in the investment banking circle. Meanwhile, IPOs of Wockhard Hospital, with an issue size of Rs 1,000 crore, Manjushree Extrusion Ltd, Techpro Systems, IRB Infra Developers, Globus Spirits Ltd and SVEC Constructions Ltd are expected during last week of January or the first week of February, the sources added.
An investment banker, who did not wish to be named, said, ?Since two large issues are currently under way, a lot of retail and HNI money will be chanellised towards them, resulting in a liquidity squeeze in this category. Companies with small and medium sized issues, which will be targeting the retail and HNI space, will plan their issues during the first week of February since it is at this time when investors are refunded their excess subscription money.?
Other prominent companies whose IPO will be hitting the market include Rural Electrification Corporation, with an issue size of Rs 957 crore, EMAAR MGF (Rs 5,000 crore). The issues are expected around February-March.
