Looking to tap into the upbeat investor sentiment, as many as six companies have filed their initial papers with market regulator Sebi to raise at least Rs 2,000 crore through initial public offers (IPOs).
Since January this year, six firms – AGS Transact Technologies, S H Kelkar and Company, Shree Shubham Logistics, Precision Camshafts, Pennar Engineered Building Systems and SSIPL Retail have filed draft red herring prospectus (DRHP) with Sebi to float IPOs.
These firms will launch their IPOs after getting necessary clearances from the Securities and Exchange Board of India (Sebi).
Together, these companies plan to mop-up at least Rs 2,000 crore through public offers. These firms plan to utilise IPO proceeds for capacity expansion, loan repayment and working capital requirements.
As per information available with Sebi, five companies filed their IPO papers this month, while one company had sought Sebi’s approval in February.
Analysts expect a spurt in IPO market this year because many firms which have already received Sebi’s approval may launch public offers in the coming months. So far this year, BSE Sensex has surged by nearly 2 per cent.
Three firms – Inox Wind, Adlabs Entertainment and Ortel Communications launched their public issues this month.
Moreover, five companies — Uniparts India, VRL Logistics, PNC Infratech, ACB (India) Ltd and Shree Pushkar Chemicals and Fertilizers — had obtained green signal from Sebi in February to float their respective IPOs.
Individually, payment solutions provider AGS Transact Technologies plans to raise Rs 1,350 crore through initial share-sale programme, while Kalpataru Power Transmission ‘s subsidiary Shree Shubham Logistics filed IPO documents to garner Rs 210 crore. Auto component maker Precision Camshafts’ IPO comprises a fresh issue of equity shares worth Rs 240 crore and an offer for sale of up to 86.40 lakh equity shares.
Fragrance maker S H Kelkar & Company filed IPO documents with Sebi. The issue comprises fresh issue of shares worth Rs 200 crore and an offer for sale of 1.55 crore shares. Last year, 20 companies had filed their draft documents with Sebi for their public offers.