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New Delhi: Aiming to tap the upbeat investor sentiment, two companies—Central Depository Services (India) Ltd (CDSL) and GTPL Hathway—will launch initial public offers (IPOs) this week to raise over Rs1,000 crore.
The bidding in BSE-promoted CDSL’s IPO will begin on 19 June and close on 21 June, while that of GTPL Hathway, part of Hathway Cable and Datacom Ltd, will be open for public subscription from 21-23 June. The IPO of CDSL’s involves its shareholders, including BSE, offloading over 3.5 crore shares through the offer-for-sale (OFS) route. It has fixed a price band of Rs145-149. At the higher end of the price band, the shares are estimated to fetch around Rs524 crore.
Leading stock exchange BSE, which holds 50.05% stake in CDSL, will offload 2.72 crore shares representing 26.05% holding in the depository to meet with Sebi norms. Under the regulations, a stock exchange cannot have more than 24% in a depository. State Bank of India (SBI), Bank of Baroda, The Calcutta Stock Exchange, are other CDSL shareholders which will offload shares through the IPO. CDSL on Friday raised a little over Rs154 crore from anchor investors.
GTPL Hathway plans to garner up to Rs485 crore through its IPO which comprises fresh issue of shares worth Rs240 crore and the remaining through OFS of up to 1.44 crore shares in the price band of Rs167-170 a share. The OFS is being made by promoters Aniruddhasinhji Jadeja, Kanaksinh Rana, Amit Shah, Gujarat Digi Com and Hathway Cable and Datacom. Proceeds from the IPO will be utilised towards repayment of loan and other general corporate purpose.
So far this year, eight companies including BSE, Shankara Building Product, CL Educate and Housing and Urban Development Corporation Ltd (HUDCO) got listed. Besides, the public issue of Tejas Networks closed last week. Together these nine companies have raised over Rs7,000 crore.
Going ahead, many firms have lined up their IPOs plans for the coming months. Eris Lifesciences’ IPO is already underway to raise about Rs1,741 crore. The year 2016 saw hectic fund-raising activity in the IPO segment as a total of 26 firms collected over Rs26,000 crore through this route—making it the best one for public offers since 2010.