With the primary market booming, a slew of companies have lined up to make their debuts on the markets in the next few months.
With the primary market booming, a slew of companies have lined up to make their debuts on the markets in the next few months. Initial public offerings (IPO) worth R5,745 crore are in the pipeline data from Prime Database shows. As many as 16 companies have received an approval from Securities and Exchange Board of India (Sebi) to list on the bourses.
Leading the pack is the R1,000 crore IPO of Varun Beverages, the second largest bottler of PepsiCo Inc, which received Sebi’s approval early this month. The company had filed its draft red herring prospectuses (DRHP) with the Sebi in June this year.
The recently concluded IPO was ICICI Prudential Life Insurance, which raised R6,057 crore was one of the biggest issues of 2016. The issue was subscribed 10.43 times on the final day with investors bidding for 6.87 crore shares of the total 13.23 crore shares on offer.
Indian companies have raised R20,000 crore through IPOs in 2016 so far. The year so far saw 20 corporates making their debut on the exchanges with healthcare, finance & investments and technology companies dominating issuances. Commenting on the strong response for public issues, Sanjeev Bhasin of India Infoline said, “After four years quality paper is coming into the market which has regained confidence in the investor, it is a very welcoming time with quality issues coming up with niche businesses.” The DRHPs of Aster DM Healthcare, PNB Housing Finance, Sheela Foam, Laurus Labs, IP Rings and BSE limited are at various stages of receiving approval from Sebi.
In 2015, the total money raised via IPOs was R13,614 crore, an increase of over 1033.61% from 2014 which saw five companies raising R1,200 crore. The year 2015 on the other hand saw 21 companies getting listed on the bourses of which 13 reported listing gains. Foreign portfolio investors (FPIs) have bought Indian equities worth $ 6.81 billion in 2016 so far. During the same period, the Sensex has gained 9.71% and the Nifty 50 is up 11.14%.