IPOs to start after a three year gap
Different fashion labels, travel operators, real estate developers, infrastructure developers and other companies that had chose to avoid tapping investors for around three years are starting to revive share sale plans in order to benefit from the buoyant equity markets and gain advantage. The companies are expecting an economic upturn and hence they have made this decision.
Around 14 privately held companies have been planning to rise about Rs 10,000 crore through the procedure of initial public offerings or IPOs in the upcoming 12 months as estimated by the bankers and brokers. Some slew of follow on public offerings is also being expected because publicly trading companies including firms run by states are joining the fund raising system.
The share sales that is being aimed at raising funds for the expansion and to reduce debt follows qualified institutional placements or QIPs or sale of equity to some professional investors like fund houses and insurance firms by around six companies which also includes GMR Group. GMR Group had raised a combined Rs 12,151 crore in the April-June quarter which is a 10 fold jump from the amount of Rs 1,222 crore which was raised in a year ago, as shown by the Prime Database.
Source: The Mint
