Aiming to tap the upbeat investor sentiment, two companies - CDSL and GTPL Hathway - will launch initial public offers (IPOs) this week to raise over Rs. 1,000 crore.
The bidding in BSE-promoted CDSL's IPO will begin on June 19 and close on June 21, while that of GTPL Hathway, part of Hathway Cable and Datacom Ltd, will be open for public subscription from June 21-23.
The IPO of Central Depository Services (India) Ltd's involves its shareholders, including BSE, offloading over 3.5 crore shares through the offer-for-sale (OFS) route. It has fixed a price band of Rs. 145-149.
At the higher end of the price band, the shares are estimated to fetch around Rs. 524 crore.
Depository and norms
Leading stock exchange BSE, which holds 50.05 per cent stake in CDSL, will offload 2.72 crore shares representing 26.05 per cent holding in the depository to meet with Sebi norms. Under the regulations, a stock exchange cannot have more than 24 per cent in a depository. State Bank of India (SBI), Bank of Baroda, The Calcutta Stock Exchange, are other CDSL shareholders which will offload shares through the IPO. CDSL on Friday raised a little over Rs. 154 crore from anchor investors.
GTPL Hathway plans to garner up to Rs. 485 crore through its IPO which comprises a fresh issue of shares worth Rs. 240 crore and the remaining through OFS of up to 1.44 crore shares in the price band of Rs. 167-170 a share. The OFS is being made by promoters Aniruddhasinhji Jadeja, Kanaksinh Rana, Amit Shah, Gujarat Digi-Com and Hathway Cable and Datacom. Proceeds from the IPO will be utilised towards repayment of the loan and other general corporate purpose.
So far this year, eight companies including BSE, Shankara Building Product, CL Educate and Housing and Urban Development Corporation Ltd (HUDCO) got listed. Besides, the public issue of Tejas Networks closed last week. Together these nine companies have raised over Rs. 7,000 crore. Going ahead, many firms have lined up their IPOs plans for the coming months. Eris Lifesciences' IPO is already underway to raise about Rs. 1,741 crore. The year 2016 saw hectic fund-raising activity in the IPO segment as a total of 26 firms collected over Rs. 26,000 crore through this route -- making it the best one for public offers since 2010.