BackFundraising via IPOs doubles to ₹ 23,670 crore in 1st half of 2018
18 IPOs raised 23,670 crore in first half of 2018, as compared to 12,000 crore that 13 companies raised via initial public offerings in the year-ago period
Premium
New Delhi: Eighteen IPOs in the first six months of 2018 raised ₹ 23,670 crore, as compared to ₹ 12,000 crore that 13 companies raised via initial public offerings in the year-ago period. The outlook is bullish for the rest of the year as well, with 50 companies—including HDFC Mutual Fund, Lodha Developers and Rail Vikas Nigam—expected to launch their initial share sales. Of these, 28 are awaiting Sebi nod to launch their IPOs and 18 others have received the regulatory approval.
Most of the funds that the 18 IPOs have raised so far in 2018 are earmarked for business expansion, repayment of loans and working capital requirements. Several others have opted for the IPO route to give exits to their existing shareholders.
At ₹ 4,473 crore, Bandhan Bank Ltd's is the largest IPO in 2018, followed by Hindustan Aeronautics Ltd ( ₹ 4,229 crore), ICICI Securities Ltd ( ₹ 3,515 crore), Varroc Engineering Ltd ( ₹ 1,955 crore), IndoStar Capital Finance Ltd ( ₹ 1,844 crore) and Lemon Tree Hotels Ltd ( ₹ 1,040 crore).
Public sector undertakings (PSUs) that took the IPO route so far in 2018 are Bharat Dynamics Ltd, RITES Ltd and Mishra Dhatu Nigam Ltd, or Midhani.
"The IPO market is buoyant for good quality company issues that are priced cautiously. There is investor appetite for companies which price their IPOs keeping money-on-table for investors," said J. Kalyaniwala, vice president (investment banking) at brokerage Prabhudas Lilladher Pvt. Ltd.
In its board meeting last month, capital markets regulator Securities and Exchange Board of India (Sebi), reduced the timeline for announcement of IPO price band to two days from the current five days.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
