The year 2016 has been a good one for Indian equity market as fund-raising via initial public offerings (IPOs) crossed the Rs 25,000- crore mark by the end of November. So far, 25 companies have launched their IPOs in CY16 to raise Rs 25,163.33 crore, a near two-fold jump from CY15 when companies raised Rs 13,614 crore, data from Prime Database revealed.
This is the highest amount raised through IPOs in last six years. Among the prominent names that launched IPOs in CY16 are L&T Infotech, PNB Housing Finance, ICICI Prudential Life Insurance, RBL Bank, among others. ICICI Prudential Life Insurance had the highest offer size of R6,056 crore, followed by PNB housing finance with an offer size of Rs 3,000 crore.
The public offering of ICICI Prudential is the largest IPO since 2010, surpassing the previous highest Bharati Infratel, which raised R4,172.6 crore through an IPO in 2012, data showed.
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However, more than three-fourth of the amount raised through IPOs went either for promoters or private equity players who off-loaded their stakes in these companies or was used for the repayment of debts or term loans.
The PE players who diluted their holdings through IPOs during 2016, include marquee names Sequoia Capital, Helion Venture Partners, and Sarva Capital. The initial share sale of both the Larsen & Toubro group companies — L&T Infotech and L&T Technology Services — were entirely offer for sales.
Similarly, ICICI Prudential Life Insurance, was entirely an offer for sale by ICICI Bank. Laurus Labs whose IPO offer will conclude on Thursday has a huge OFS component.