March may See Cos Raising Up to ₹ 6000 cr Via IPOs
Month could turn out to be the second-best for the IPO market in six-and-a-half years
Mumbai: At least half a dozen companies are set to raise ₹ 6,000 crore in March or early April through initial public offerings (IPOs) in what would be the second best month for IPOs in last six-and-a-half years.TheIPOstobelaunchedareMusic Broadcast, Avenue Supermart, Central DepositoryServices,SChand&Co, C o n t i n e n t a l Ware h o u s i n g Cor porat i o n, Securit y a nd Intelligence Services, Housing and Urban Development Corporation and Shankara Building Products, said bankers.
“Unless results of UP elections are a complete shocker and contrary to popular perception, given the liquidity in economy, the equity markets should continue to stay on course and all IPOs and QIPs being planned for March and April should be well received” said Atul Mehra, MD, investment banking, JM Financials.
Apart from the above, NSE, GoAir, SBI Life Insurance, Aster DM Healthcare, Hinduja Leyland Finance, IRB InvIT
Fund and Cent Bank Home Finance (CBHFL) are among other two dozen companies likely in the IPO pipeline for 2017. This year’s first IPO for the BSE was oversubscribed 51 times last month. The issue, which opened on January 23, raised up to ₹ 1,243 crore from the IPO priced at ₹ 805-806 per share. Investment bankers said that there is a huge demand for new issuances from domestic investors.
“Not only retail but also institutional investors, mainly mutual funds, sitting on cash, are waiting for good companies to invest,” said Dara Kalyaniwala, seni o r VP- i nve s t ment b a n k i n g a t Prabhudas Lilladher. “Most of the listed companies are currently over or fairly valued and only new offerings can give good opportunities”. Music Broadcast, the company that runs Radio City FM channel, will launch its ₹ 500-crore IPO on March 6. The issue will close on March 8 and will be priced in a ₹ 324-333 range. Shares in Jagran Prakashan-promoted Radio City are at a premium of ₹ 70-75 over the expected issue price in the grey market, said brokers dealing in this unregulated market. Avenue Supermart, which operates the retail chain under the D-Mart brand, is set to open on March 8 and close on March 10 to raise about ₹ 1,800 crore. The issue is likely to be priced in the range of ₹ 295-299, said a banker to the issue.