Companies to raise 50 thousand crores through IPOs
IPOs, companies to raise 50 thousand crores
A bullish equity market will boost the primary market, a strong performance in the corporate sector will prompt companies to plan for expansion.
The correction phase in the equity market is almost complete. A positive trend has started in the market since the last week of July. Inflation will be contained globally, commodity prices are beginning to fall. Crude will remain confined to the $90-115 range with several strong reasons for companies to plan for expansion. It is estimated that by the end of calendar year 2022, an average of 30-35 companies will raise 45-50 thousand crore through IPO. SEBI has approved 28-30 companies to bring IPO. Among the companies that have secured SEBI's approval to raise funds in the primary market is lifestyle retail brand FabIndia.
Most of the companies are yet to announce their IPO launch dates and they are waiting for the right time to launch their issues as the current market conditions are challenging, merchant bankers said. The current environment is challenging and companies that hold approvals are waiting for the right opportunity to launch initial share-sales. In fact many of these companies have completed the roadshow and are waiting for the right time.
A total of 28 companies got approval to tap the IPO route to raise funds during April-July 2022-23, according to Securities and Exchange Board of India (Sebi) data. These companies have a total of Rs. 50,000 crore expected to be raised. So far in the current financial year, 11 companies have collected Rs. 33,254 crore in funds raised, LIC has the largest share of Rs. 20,557 crores. All the companies entered the primary market during April-May and not a single public issue was launched after May. After June-July several companies have filed prospectus with SEBI for IPO which again shows a positive trend for the market.
It was the worst quarter since 1994, with no listings on the Main Board :
was the worst quarter since 1994 for the primary market with not a single company listing on the Main Board. Due to global geo-political issues, slowdown, uncertainty of the market, the companies put back the idea of IPO but now again the IPO market will accelerate and by the end of the year more than 50 thousand crore IPOs will be held. > -Paresh Vaghani, Econo Broking Pvt.
On August 12, Sirma SGS Technology will launch an IPO worth Rs. 840 crore
EMS company Sirma SGS Technology Ltd has set a price band of Rs 209-220 per equity share for its maiden public offering. Opens on August 12 and closes on August 18. Investors can bid for a minimum of 68 equity shares and thereafter in multiples of 68 equity shares. The IPO includes a total of Rs 766 crore worth of fresh equity shares and 3,369,360 equity shares for offer for sale (OFS).