Primary market activity is seen picking pace in the next fortnight as companies line up to finish their fund raising before US Federal Reserve meeting on December 15-16. Four to five companies aim to hit capital markets in the next two weeks with an aim to raise about R3,700 crore, data compiled by Prime Database showed.
Dr Lal PathLabs and Alkem Laboratories will launch their IPOs on Monday. Both companies will raise a total of R1,900 crore.
Sources told FE that Bengaluru-based multi-specialty hospital chain Narayana Hrudayalaya is planning to hit the markets later next week. Two other companies — Nuziveedu Seeds and Amar Ujala Publications — also plan to launch their initial public offerings (IPOs) in the next fortnight.
The buzz in primary markets assumes significance as companies have continued to queue up for listing despite volatility in the secondary markets. The benchmark indices have lost close to 5% during the year so far.
“It has been a good year for primary markets compared to last five years. During the year we saw some good companies going for IPOs. These new entrants have given good returns to investors and hence the overall sentiment in primary markets is positive,” said Utpal Oza, MD & head of Investment Banking, Nomura Financial Advisory & Securities (India).
The IPO pipeline will get better in the next few months as US Fed’s decision on interest rates will clear the uncertainty in the emerging markets and government of India’s disinvestment plan will provide impetus to the markets, Oza added.
Total fund raising through IPOs route will touch R15,000-crore mark for CY15 if these five issues go through making it the best calendar since 2010, data showed. So far 18 companies have raised close to R11,000 crore from the primary markets during CY15.
InterGlobe Aviation and SH Kelkar were the last two companies to hit the primary markets. InterGlobe Aviation — the company that operates India’s most profitable airline Indigo — raised more than R3,000 crore through the IPO, the highest fund raising through IPO route since December 2012.
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