36 firms line up public issues worth Rs 35,000 cr this year

The primary market seems to get busier as three dozen companies have lined up public issue of shares worth Rs 35,000 crore in the coming months, largely to fund their expansion projects and working capital requirement.

The list includes six staterun entities — Indian Renewable Energy Development Agency, Rail Vikas Nigam, IRCON International, RITES, Garden Reach Shipbuilders and Engineers and Mazagon Dock — as the government intends to unlock the real value of such PSUs and bring in greater accountability.

Of these three dozen firms, most of the companies plan to utilise the proceeds of the issues for business expansion as well as working capital requirements, as per the draft papers filed with the Securities and Exchange Board of India. Besides, some of the firms believe the listing of equity shares on bourses will enhance their brand name and provide liquidity to existing shareholders.

"After raising record funds in 2017, the primary market this year will also witness healthy fund raising activity driven by improving utilisation levels across industries and tightening of credit availability on account of poor state of affairs in the banking industry," Equirus Capital’s Director of Capital Market Munish Aggarwal said. This year, BarbequeNation Hospitality, TCNS Clothing Company, Nazara Technologies and Devi Seafoods are among the 12 companies that have secured Sebi's nod to float public offers.