Initial Public Offerings (IPO) of at least seven companies including Lodha Developers and HDFC Mutual Fund are expected to hit the Indian capital market in the coming week to raise over Rs 14,000 crore. The first one among the lot would be TCNS Clothing, which sells its products under W, Aurelia and Wishful brands, with its Rs 1,125 crore initial share-sale launch this week.
The six others that are, Lodha Developers, HDFC Mutual Fund, Nekkanti Sea Foods, Flemingo Travel Retail, Patel Infrastructure and Genius Consultants are expected to launch their respective IPOs in the coming week, according to a PTI report.
In all, these seven companies could raise more than Rs 14,000 crore, it further said citing sources.
These companies are coming out with initial public offers (IPOs) to raise funds for business expansion plans, repayment of loans and to support working capital requirements. Further, many firms are opting for the IPO route to give partial exit to their existing shareholders including private equity and venture capital firms. By taking the IPO route, companies will also achieve the benefits of listing the equity shares on the bourses, which enhances their brand name.
PTI also reported that the railway public sector unit IRCON has received a go-ahead nod from the market regulator Sebi for its IPO last week and it could hit the markets in September to raise about Rs 500 crore by divesting 10 percent stake or over 99 lakh shares.
In the period between January-June 2018, 18 companies have raised Rs 23,670 crore through their respective IPOs. This number is higher than Rs 12,000 crore garnered by 13 issuers in the first six months of 2017.
Further, Sebi (Securities and Exchange Board of India), had decided to reduce the timeline for announcement of initial share-sale price band in its board meeting last month from five days to two days. This will aid the IPO market. Under the new rules, the timeline for announcing price band for the initial share-sale offer will be reduced to two days from the current five days.