Indian companies saw a 36 per cent increase in IPOs (initial public offerings) at Rs 1050 crore in the first half of FY14. Most of the companies from the micro, small and medium enterprises (MSME) sector.
According to primary market database portal, Prime Database, a total of Rs 1050 crore was raised by 16 companies in the two bygone quarters of the Indian fiscal year.
In the corresponding period 13 companies raised Rs 772 crore through the IPO route, it was reported.
It was reported that big companies did not resort to IPO route this time around due to prevailing economic conditions and volatility. “With the secondary market still being extremely volatile and overall lack of confidence, no immediate revival of the primary market is seen in balance part of the year. The biggest disappointment for the primary market has again been the lack of divestments by the government,” Pranav Haldea, Managing Director of the company is quoted to have said.
He pointed out that 14 companies which had earlier intended to raise around Rs 4500 crore allowed it to lapse.
“At present, only 16 companies planning to raise Rs 3,800 crore are holding Securities and Exchange Board of India (SEBI) approval and another 10 companies intending to raise Rs 3,100 crore have filed with SEBI and are awaiting approval,” he said.
The biggest non-SME IPO for the period happened to be Just Dial, which raised `919 crore, accounting for 87 per cent of the total mobilisation.
Among the high garners were Information technology with Rs 1927 crore by three firms, it was reported.