Indian Companies Acquire Rs. 6,000 CR through IPOs in 2012-13


Indian Companies Acquire Rs. 6,000 CR through IPOs in 2012-13Several Companies in India collected over Rs. 6.000 CR during the financial year of 2012-13 through their (IPOs) intial public offerings. Approximately 10 companies managed to aquire Rs. 6,059 CR through their initial public offering during the financial year.

March 31, 2013 presents a data that shows the stock exchanges after systematic analysis. This has marked a slim boost of 4% from the total funds raise through IPOs of the previous financial year, 2011-12. In this year, 33 companies had aquired nearly 5,808 CR. Also, in 2010-11, 52 companies raised nearly 33,183 CR worth capital through their intial public offerings.

However, many of the IPOs that smacked the capital market were a little smaller in size & some organizations also withdrew their offers when they got a poor response. Some companies did a lot of ground work & obtained necessary approvals. After doing so, these companies didn’t launch their offers.

Bharti Airtel Came out with the Largest Public Issue of the Year

Bharti InfratelBharti Infratel, the arm of the telecom titan Bharti Airtel, rolled out with the greatest IPO of the year. It actually hit the captical market to raise 4,118 CR. This also marked the biggest IPO since Oct. 2010, when State-run Coal India had aquired 15,475 CR.

Also, there were three Jewelley Firms that entered the arena of capital market this financial year. These firms were; Tara Jewels, Tribhovandas Bhimji Zaveri & PC Jewellers.

Another three organisations; Plastene India Ltd, Samvardhana Motherson Finance Ltd & Sai Silk withdrew their offers due to weak response. These offers were worth 1,832 CR.

In the major initial public offerings of the year, PC jewellers collected nearly 609 CR & the agency CARE aquired 504 CR. Another firm, Repco Home Finance also raised about 270 CR through its IPO

Other IPOs that Garnered Well

Other IPOs included VKS Projects (55 CR.), V-Mart Retail (26.25CR.), Speciality Restaurants Ltd. (26.41 CR.) & MT Educare (35 CR.)

Another thing to know is that lesser companies have entered the pool of capital market as compared to the previous year.The companies were reluctant to hit the market cause of the volatile market conditions. Also, these companies observed that the firms that implemented their public stake sale plans did not well.

Few market experts mentioned that, “There were many factors for avoiding the IPO route to raise funds, firstly domestic and global market were not very conducive and many companies that entered the secondary market have been trading below the issue price,” Geojit BNP Paribas Financial Services Research Head Alex Mathews said.

He further said that the government has also offloaded its stake in many companies through Offer-for Sale (OFS) route, which means investors have lot of options.

Moreover, three firms namely Jyoti CNC Automation, BSCPL Infrastructure and Ortel Communications–have filed their draft documents with capital market regulator Sebi (Securities and Exchange Board of India) to raise funds through IPO since the beginning of the calendar year 2013.

Besides, Bharat Business Channel, direct to home TV arm of Videocon Group, has already received the go-ahead from Sebi for its proposed Rs. 700 crore IPO.


Hindustan Times

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