IPOs from ADAG, Biyani stable may fructify only in 2008

IPOs from ADAG, Biyani stable may fructify only in 2008


Mumbai: Anil Ambani Group firm Reliance Power and Kishore Biyani Group company Future Capital’s plans to hit the capital market with IPOs will have to wait till 2008 along with about four dozen other companies.

Although the year that is drawing to a close has been good for IPOs with over 100 deals, including mega public issues such as that of DLF, as many as 50 companies that started their issue process this year are still awaiting regulatory approval.

These include the planned the IPO of state-run National Hydroelectric Power Corp (NHPC), which filed its draft red herring prospectus over eight months ago in April and is among the longest pending public issues for the year.

Another high-profile IPOs in the queue is that of Reliance Power, which filed its DRHP on 3 October. Sebi is awaiting “clarifications" from the lead managers for issuing its observations, which are statutory requirements to go ahead with the public issue.

Reliance Power is being touted as India’s biggest ever issue with a size of over $3 billion, surpassing DLF’s $2 billion-plus IPO. This would be the Anil Ambani Group’s first ever IPO after it was carved out from the erstwhile Reliance empire in 2005.

Besides, Biyani-led Future Group had also filed the draft prospectus for its financial services arm Future Capital about three months earlier and is still under the process.

Other proposed IPOs that would not be able to hit the market this year include that of real estate major EmaarMGF Land, Oil India, Titagarh Wagons, Gammon Infra Projects, Surya Foods and Rural Electrification Corporation (REC).

EmaarMGF is the second biggest pending IPO with an estimated size of Rs6,750 crore, while NHPC, REC, Oil India and Future Capital are estimated to raise Rs1,200-2,200 crore each. The state-run firm NHPC had filed its draft offer on 2 April, while another state-run power firm REC’s failed its draft offer on 23 August.

EmaarMGF had filed its prospectus on 26 September, while Future Capital papers were submitted on September 28.

Some companies like Oil India, Mahindra Holiday and Resorts India and Mandhana Industries filed their initial prospectus this month and are currently going through processing as per Sebi guidelines.

According to the regulatory norms, all firms making an IPO for over Rs50 lakh need to file a draft offer document with Sebi, which might issue its observations on the offer document within a month from the date of receipt.

However, most of the delays are understood to be due to non-submission of clarifications by lead managers.

According to information available on the Sebi website, clarifications are awaited from lead managers on IPOs of Reliance Power, NHPC, REC, Titagarh Wagons, Gammon Infra Projects, Surya Foods and Agro Ltd and Xenitis Infotech.

Besides, clarifications are also awaited on proposed public issues of Kamayaqni Patients Care, Alkali Metals, Avon Weighing System, Midvalley Entertainment and Vascon Engineers.

In addition, Sebi is currently under process of issuing observations on IPOs of Acme Tele Power, V-guard Industries, Archidply Industries, Neel Metal Products and Globus Spirits among others.