Public offers worth ₹32,881 crore set to expire by the end of December
2 min read . Updated: 22 Aug 2022, 06:18 AM IST
PremiumAfter the RBI’s decision to cap HNI funding at ₹1 cr, people found that issues were not being subscribed
MUMBAI : API Holdings Ltd, which runs the e-commerce platform API Holdings (PharmEasy), has decided to withdraw its plans to go public, even as public offers worth ₹32,881 crore are set to expire in the last quarter of calendar year 2022.
As many as 27 companies that had filed their draft red herring prospectus (DRHPs) with the Securities and Exchange Board of India (Sebi), will need to refile their initial public offering (IPO) papers if they fail to launch an IPO in four months, according to a Mint analysis.
A public issue/rights issue needs to be opened within 12 months of the date of issuance of observations, according to Sebi regulations. The period was extended by six months during the pandemic, but this has now been withdrawn.
“We are witnessing a considerable gap in the pace at which DRHPs are being filed versus the rate at which IPOs are being launched. Some DRHPs filed by the companies will expire soon so they will look to refile them," said a banker with a private bank.
One big-ticket public offer set to expire on 26 August is airline GoFirst.
The debt laden airline, part of the Wadia group, is expected to raise ₹3,600 crore via the public offer. An email sent to the spokesperson of GoFirst did not result in a response.
Other companies whose DRHPs expire in August and September include Northern Arc Capital, Chemspec Chemicals, Shri Bajrang Power Ispat, and Popular Vehicles and Services.
The other 22 DRHPs are set to expire between October and December. These include Mobikwik , Skanray Tech, Penna Cement, ESAF, Inspira Enterprises, Fusion Microfinance, Tracxn Technologies, Puranik Builders, Electronics Mart, Gemini Edibles, Healthium Medtech, India 1 Payments, VLCC Healthcare, Godavari Biorefineries , Sterlite power transmission, ESDS Software, Emcure Pharmaceuticals, Ixigo, Keventer Agro, Global Health, Veeda Clinical, and GPT Healthcare. These account for ₹27, 431 crore.
“Last year we saw most companies that filed their DRHPs in first half of the year which got their Sebi approval too. In the first half, irrespective of how they fared post listing almost every issue may be barring one or two received overwhelming response. Following the Reserve Bank of India’s (RBI’s) decision to cap the high networth individual (HNI) funding at ₹1 crore, people found that issues were just not being subscribed. So, the valuations with which these companies had filed their documents suddenly saw a drop of 25-40%. Now most promoters were unwilling to go with those valuations, that’s where some of them got stuck," said market expert Arun Kejriwal, founder, Kejriwal Research.
