Corporate fundraising via IPOs doubles to Rs23,670 cr in H1 2018
10 July 2018
Eighteen companies have raised a combined Rs23,670 crore via initial public offers (IPOs) in the first six months of 2018, compared to 13 companies raising a total of Rs12,000 crore via initial public offers in the year-ago period.
Also, 50 companies, including HDFC Mutual Fund, Lodha Developers and Rail Vikas Nigam, are expected to launch their IPOs in the second half of the year. While 18 of these IPOs have regulatory clearance 28 are awaiting Sebi nod to launch their IPOs.
Most of the funds that the 18 IPOs have raised so far in 2018 are earmarked for business expansion, repayment of loans and working capital requirements. Several others have opted for the IPO route to give exits to their existing shareholders.
In the largest issue of the year so far, Bandhan Bank raised Rs4,473 crore through IPO, which was followed by Hindustan Aeronautics Ltd (Rs4,229 crore), ICICI Securities Ltd (Rs3,515 crore), Varroc Engineering Ltd (Rs1,955 crore), IndoStar Capital Finance Ltd (Rs1,844 crore) and Lemon Tree Hotels Ltd (Rs1,040 crore).
Besides public sector undertakings such as Bharat Dynamics Ltd, RITES Ltd and Mishra Dhatu Nigam Ltd (Midhani) have also entered the market with initial share sales in 2018.
In its board meeting last month, capital markets regulator Securities and Exchange Board of India (Sebi), reduced the timeline for announcement of IPO price band to two days from the current five days.