The Asian Age

2 IPOs hit tar­get; ex­perts cau­tious to call it re­vival

The sen­ti­ments have def­i­nitely im­proved, though it didn’t re­sult in the launch of many IPOs, says IDFC MD

- AGE COR­RE­SPON­DENT

De­spite the two ini­tial pub­lic of­fers ( IPO) launched dur­ing this fi­nan­cial year re­ceiv­ing an over­whelm­ing re­sponse from in­vestors, mer­chant bankers said that it is too early to view it as a signs of re­vival in the pri­mary mar­ket.

Ac­cord­ing to them, the reg­u­la­tory fil­ings of the draft of­fer doc­u­ments are yet to pick up pace and it would take a cou­ple of months for com­pa­nies to tap the pri­mary mar­ket in a big way.

“The sen­ti­ments have def­i­nitely im­proved, though it didn’t re­sult in the launch of many ini- tial pub­lic of­fers. How­ever, in the last three months, we have seen an in­crease in the ac­tiv­ity lev­els and since doc­u­ment prepa­ra­tion would take at least 2- 3 months we can see a cou­ple of com­pa­nies fil­ing their of­fer doc­u­ments with the reg­u­la­tor,” said In­draneil Borkakoty, man­ag­ing di­rec­tor, IDFC In­vest­ment Bank­ing on the side­lines of the an­nounce­ment of ` 350 crore pub­lic of­fer from Sharda Cropchem Ltd.

In April this year, the ` 180 crore pub­lic of­fer from Won­derla Hol­i­days was sub­scribed 38 times while the ` 197 crore ini­tial pub­lic of­fer from Snow- man Lo­gis­tics, which was launched last week got sub­scribed 60 times.

While in­vestor re­sponse to th­ese of­fers re­mained im­pres­sive in­di­cat­ing enough ap­petite for fresh qual­ity pa­pers, not many com­pa­nies have come for­ward to file their draft of­fer doc­u­ments with the Se­cu­ri­ties and Ex­change Board of In­dia ( SEBI).

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