Apart from CCD and IndiGo, at least 15 firms have got the go-ahead from regulator Sebi to launch their respective IPOs, while another 17 companies are awaiting green signal from the markets regulator. (Graphic: Sanjay Tambe)

With big brands like Cafe Coffee Day and IndiGo lining up their public offers, the IPO market is set for a four-year record performance this year as close to Rs 6,600 crore has already been raised and plans are afoot for garnering another Rs 20,000 crore.

Coffee Day Enterprises, which runs Cafe Coffee Day (CCD) chain of restaurants, will hit the capital markets this week on October 14 to garner Rs 1,150 crore — which would take the total mop-up in 2015 so far to close to 7,800 crore.

This itself would be the highest amount raised from IPOs in four years.

Additionally, low-cost carrier Indigo’s parent company Interglobe Aviation is slated to hit the IPO market later this month to raise about Rs 2,500 crore.

Besides, many more firms are expected to take the plunge into the primary market during the festive season starting from Dussehra to Diwali. Those in pipeline include Infibeam, the first e-commerce firm in India to tap IPO market.

Apart from CCD and IndiGo, at least 15 firms have got the go-ahead from regulator Sebi to launch their respective IPOs, while another 17 companies are awaiting green signal from the markets regulator.

These 34 companies are together estimated to raise more than Rs 20,000 crore.

“Festive season is approaching, so I expect many companies that are holding their IPO plans and companies that have not hit the capital market despite getting Sebi’s approval would definitely plan to go ahead with their public issues,” CNI Research Head Kishor Ostwal said.

The companies are tapping primary markets to raise funds to meet their business expansion plans, to support capital expenditure needs. In addition, the firms are launching IPOs, to give institutional investors like private equity funds an opportunity to exit.

So far this year, 15 companies have launched their IPOs and have collectively raised over Rs 6,600 crore. This year is set to become the best period in four years in terms of fund raising through initial share-sale programmes.

In comparison, six IPOs had hit the market in the entire 2014 and together garnered just Rs 1,261 crore, while three firms had launched their public issues in 2013 to mobilise Rs 1,284 crore.

A total of Rs 6,938 crore and Rs 5,966 crore had been mopped-up in 2012 and 2011 respectively. The highest-ever mobilisation through IPOs in a single year was in 2010 at Rs 37,535 crore.

Since the beginning of 2015, as many as 37 companies have filed their draft documents with Sebi to float their IPOs. In the same period, the markets watchdog has given approval to 28 firms to launch their initial share sale plans, some of which were pending from the previous year.

Among the forthcoming IPOs, L&T Infotech, the IT unit of engineering and construction giant L&T, is eyeing Rs 2,500 crore, Alkem Laboratories is aiming to garner Rs 1,500-3,500 crore, and Matrimony.com is looking to raise an estimated Rs 600-700 crore.

Others in the queue include Team Lease Services, VLCC Health Care, Dr Lal Pathlabs, Matrix Cellular, Infibeam Incorporation, Parag Milk Foods, Narayana Hrudayalaya, RBL Bank and Quickheal Technologies.

During earlier auctions, government bonds have always been subscribed multiple times, given the huge interest among foreign investors, while the demand for corporate bonds remains less. (Source: PTI)

Leading bourse BSE, will tomorrow, auction investment limits for foreign investors to buy government debt securities worth Rs 5,600 crore.

It would include the increased investment cap announced by markets regulator Sebi last week.

The auction will be conducted on BSE’s ebidxchange from 1530 hours to 1730 hours, after the close of market hours on Monday, October 12, the exchange said in a circular.

A total of debt limits worth Rs 5,600 crore, including new limits, would be auctioned on the exchange platform.

The debt auction quota gives overseas investors the right to invest in the debt, up to the limit purchased.

A mock bidding session was conducted on Friday to check the system performance.

During earlier auctions, government bonds have always been subscribed multiple times, given the huge interest among foreign investors, while the demand for corporate bonds remains less.

Last month, an auction for government bonds worth Rs 661 crore had attracted bids to the tune of Rs 1,561 crore.

Sebi has decided to enhance the limit for investment by FPIs in government securities in two tranches from October 12, 2015 and January 1, 2016.

The limit for overseas investors in securities would be hiked to Rs 1,29,900 crore and Rs 1,35,400 crore on October 12 this year and January 1, 2016, respectively.

Currently, they are allowed to invest up to Rs 1,24,432 crore in government debt securities through auction.

Infosys will kickstart corporate earnings season from Monday, followed by TCS, Hindustan Unilever and Reliance Industries. (Photo: PTI)

Second-quarter earnings from blue-chips such as Infosys, TCS and Reliance Industries and key macroeconomic data — IIP and inflation — will dictate the trend of the stock market this week, according to experts.

“The near-term major trigger for the market will be September 2015 earnings. Focus will also be on management guidance and outlook from corporates for the remaining part of the year. Apart from earnings, macroeconomic data, trend in global markets, movement of the rupee against the dollar and crude oil price will decide the trend on the bourses this week,” said Vijay Singhania, Founder Director, Trade Smart Online.

Infosys will kickstart corporate earnings season from Monday, followed by TCS, Hindustan Unilever and Reliance Industries.

“Going forward, with the results season having already kicked in, the week ahead will be greeted with all important results of Infosys, followed by TCS on Tuesday. These results could impact market sentiment and induce some volatility.

“Further, industrial production (IIP) and inflation data will also be released, which will be on the market radar,” said Head, Research, Reliance Securities, Hitesh Agrawal.

Over the last week, the BSE benchmark Sensex gained 858.56 points to conclude at 27,079.51.

The index has gained 1,216.01 points, or 4.70 per cent, in two weeks.

“Movement of index in the near term will depend on trend in global markets, investment by foreign investors, movement of the rupee against the dollar, CPI and IIP data to be announced on October 12 and also WPI data to be announced on October 14,” said CMT Director Research, CapitalVia Global Research Limited Vivek Gupta.

InterGlobe Aviation, which operates low-cost carrier IndiGo Airlines, is expected to launch its initial public offering (IPO) later this month

InterGlobe Aviation, which operates low-cost carrier IndiGo Airlines, is expected to launch its initial public offering (IPO) later this month, with October 26-28 as the most likely date, three people familiar with the development told FE.

Sources said the price band is being finalised, but largely settled-upon, based on feedback from investor roadshows held on three continents last month. The company is also mulling a 3-5% discount to retail investors but a final decision along with the minimum bid size will be taken in 7-10 days, one of the sources said.

The promoters and existing shareholders will offload a 15% stake to raise Rs 3,200-3,300 crore ($490-500 million based on current exchange rates). The issues comprises fresh stock worth Rs 1,272 crore, based on the information published in the regulatory filing. In addition, existing shareholders will look to sell 3.01 crore shares worth an estimated Rs 1,900-2,000 crore, sources said.

The primary market deal will value the company at around Rs 21,000-21,500 crore, about six times that of rival Jet Airways, according to data available with the stock exchanges.

InterGlobe’s IPO will be the biggest primary market offering since Bharti Infratel’s Rs 4,100-crore-plus public issue in December 2012, statistics compiled by Prime Database showed. The company filed its preliminary prospectus with the Securities and Exchange Board of India on June 30 and received regulatory clearance on September 11.

InterGlobe’s share sale is also the first by an Indian airline since the 2006 listing of Deccan Aviation, later taken over by Kingfisher Airlines. Jet Airways, then India’s largest private airline, raised Rs 1,900 crore in February 2005.

The privately-held IndiGo is one of the two domestic carriers that makes a profit, the other being GoAir. Its net profit for FY15 grew around four times to Rs 1,304 crore driven by low fuel costs, passenger growth and better yields. It reported a net profit of Rs 473.32 crore for FY14. Revenue in FY15 rose 18% to Rs 13,925 crore.

InterGlobe has appointed Citigroup Global Markets, JPMorgan and Morgan Stanley as global co-coordinators and book running lead managers, and Barclays, Kotak Investment Banking and UBS as book running lead managers.

IndiGo was founded in 2006 by entrepreneur Rahul Bhatia and Rakesh Gangwal, a former chief executive of US Airways. The airline has used its low-cost model to stay profitable and become India’s largest airline in a market enjoying double-digit growth in passenger numbers where most carriers lose money because of tough competition and high costs. The airline, which flies a single family of narrow-body planes, flies one in three of India’s air travellers.

A couple of months ago, IndiGo placed an order for 250 Airbus A320neo jets — the largest ever single order for Airbus aircraft by number of jets — as part of its bid to capture a bigger slice of India’s fast-growing aviation market. The order, though not yet finalised, is expected to be completed before the end of this year. The carrier has already placed firm orders for a total of 280 Airbus A320-family jets, of which it has taken delivery of 100.

The airline plans to expand its fleet size to 111 and 137 aircraft by the end of FY16 and FY18, respectively.