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Virendra Verma

Mumbai , March 16

THE primary market is heading for busier times over the next 6-8 weeks with public issues expected to raise over Rs 4,000 crore.

Companies from varied sectors with consistent track record and profitability are set to tap the capital market for fresh funds.

None of them fall in the category of disinvestment by government or existing promoters.

Investment bankers and primary market experts said, it is after a long time that such hectic activity is being seen in the primary market. The last time one witnessed similar levels was in January-February 2004 when the government diluted its stake in several PSUs.

Among companies slated to hit the primary market in the next few weeks are IVRCL Infrastructure, Jaiprakash Hydro-Power, 3i Infotech (formerly ICICI Infotech), Gokuldas Exports, Oriental Bank of Commerce, Allahabad Bank, Shringar Cinema and Shoppers' Stop.

Some small IPOs are also scheduled for this period, investment bankers said.

The beginning of 2005 has been very good for the primary market with more than Rs 5,500 crore raised in the first two-and-half months. Big issues in the market so far this year include Punjab National Bank (Rs 3,120 crore) and Jet Airways (Rs 1,900 crore). Others were smaller ones such as Dena Bank (Rs 216 crore), Emami (Rs 35 crore), UTV Software (Rs 90 crore) and Gateway District Park (Rs 150 crore).

The first three months of 2004 was also very good for the primary market due to disinvestment by the government with around Rs 13,000-14,000 crore raised during this period.

"This time the quality of paper hitting the market is good and so there should not be concern for the investors," said Mr Prithivi Haldea, Managing Director of Primedatabase, an independent primary market-monitoring firm.

He said the success of some of the IPOs that hit the market recently indicates that the forthcoming issues should also get good response. "With secondary market in good condition, subscriptions to the public issues should not be a problem".

However, Mr Haldea feels that companies are becoming very aggressive in pricing the issues.

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