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

The Economic Times - - Companies: Pursuit Of Profit -

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.

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