Year 2017 turned out to be one of the best years for primary markets in India. Over Rs 67,000 crore were raised in the initial public offering (IPO) market by the Indian Inc. last year. The stellar performance by the Indian stock markets also helped in spurring the interest of the investors. Most of the IPOs received blockbuster subscription last year. Even in 2018, retail investors and institutions alike are lining up to pick large stakes in the IPOs. The last IPOs that joined the list of oversubscribed issues in 2017 were of Astron Paper and Board Mill Ltd. And, even these were subscribed by over 243 times last week before listing. The year 2017 has seen the highest number of grossly oversubscribed issues.
Spurred by the interest of investors in the market, nearly 100 small and medium enterprises (SME) are expected to list on the BSE’s platform in 2018, PTI cited unidentified source from the bourse. In 2017, nearly 55 SMEs listed on the BSE SME platform through the IPO route. Talking about the rising interest of the SMEs in coming out with IPOs this year, BSE SME head Ajay Thakur told PTI that the healthy IPO pipeline shows the confidence of the companies and around 100 SME IPOs may get listed in 2018.
Nearly 22 companies have already received approval of the BSE and another 19 are in wait of go-ahead, PTI reported. The funds that will be raised through these IPOs will be spent on expansion plans, working capital requirements and other general corporate purposes. Most of the SMEs that approached BSE SME this year come from Gujarat and Maharashtra, informed Ajay Thakur. The companies represent various sectors such logistics services, media, automotive components, pharma, infrastructure and hospitality, among others.